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Evidence Report 55August 2012

Sector Skills Insights:Tourism

Sector Skills Insights: Tourism

Matthew Williams

Institute for Employment Studies

Aoife Ni Luanaigh, Richard Garrett

UK Commission for Employment and Skills

August 2012

Foreword

The UK Commission for Employment and Skills is a social partnership, led by

Commissioners from large and small employers, trade unions and the voluntary sector. Our

mission is to raise skill levels to help drive enterprise, create more and better jobs and

promote economic growth. Our strategic objectives are to:

• Provide outstanding labour market intelligence which helps businesses and people make

the best choices for them;

• Work with businesses to develop the best market solutions which leverage greater

investment in skills;

• Maximise the impact of employment and skills policies and employer behaviour to

support jobs and growth and secure an internationally competitive skills base.

These strategic objectives are supported by a research programme that provides a robust

evidence base for our insights and actions and which draws on good practice and the most

innovative thinking. The research programme is underpinned by a number of core principles

including the importance of: ensuring ‘relevance’ to our most pressing strategic priorities;

‘salience’ and effectively translating and sharing the key insights we find; international benchmarking and drawing insights from good practice abroad; high quality analysis

which is leading edge, robust and action orientated; being responsive to immediate needs

as well as taking a longer term perspective. We also work closely with key partners to

ensure a co-ordinated approach to research.

This report contributes to the UK Commission’s work to transform the UK’s approach to

investing in the skills of people as an intrinsic part of securing jobs and growth. It outlines

the performance challenges faced in the tourism sector, the ‘real-life’ skills solutions

implemented by leading and successful businesses to overcome them, and the benefits from

doing so. Similar reports are available for the following sectors: Advanced Manufacturing;

Construction; Digital and Creative; Education; Energy; Health and Social Care, Professional

and Business Services; Retail. Each report is summarised by an accompanying PowerPoint

slide pack. By understanding the key performance challenges employers face and the skills

solutions available to address them on a sector-by-sector basis the UK Commission can

make better use of its investment funds to support economic growth.

Sharing the findings of our research and engaging with our audience is important to further

develop the evidence on which we base our work. Evidence Reports are our chief means of

reporting our detailed analytical work. Each Evidence Report is accompanied by an

executive summary. All of our outputs can be accessed on the UK Commission’s website at

www.ukces.org.uk

But these outputs are only the beginning of the process and we will be continually looking for

mechanisms to share our findings, debate the issues they raise and extend their reach and

impact.

We hope you find this report useful and informative. If you would like to provide any

feedback or comments, or have any queries please e-mail [email protected], quoting the

report title or series number.

Lesley Giles Deputy Director UK Commission for Employment and Skills

Table of Contents

GLOSSARY ............................................................................................................ i

Executive Summary .............................................................................................. i The importance of the sector ................................................................................................ i

Key Challenges ...................................................................................................................... i

Skill demand .......................................................................................................................... ii

Skills supply ......................................................................................................................... iii

Conclusion: growth through skills ..................................................................................... iv

1 The Economic and Policy Climate ............................................................. 1

2 The Importance of the Sector ..................................................................... 4

2.1 Overall Output and Employment Performance ..................................................... 5

Productivity ............................................................................................................................ 6

2.2 Employment Structure ............................................................................................ 7

2.3 Employment status and working patterns .......................................................... 11

Labour turnover .................................................................................................................. 13

2.4 Distribution of Employment by Nation and Region ........................................... 13

2.5 International Standing of the Sector .................................................................... 14

2.6 Conclusion ............................................................................................................. 15

3 Key Developments in the Sector over the Medium Term ....................... 16

3.1 The recession and recovery ................................................................................. 16

3.2 Investment and innovation ................................................................................... 17

3.3 Technology ............................................................................................................. 17

3.4 Global competition ................................................................................................ 19

3.5 Consumer demand ................................................................................................ 19

3.6 Environment ........................................................................................................... 20

3.7 Strategic management skills ................................................................................ 21

3.8 Role of skills in overall competitiveness ............................................................ 22

4 Employment and Skill Demand in the Sector .......................................... 23

4.1 The Changing Demand for Employment ............................................................. 23

4.2 Factors Affecting the Demand for Skills ............................................................. 23

4.3 Changing Patterns of Skill Demand ..................................................................... 26

4.4 Replacement Demand ........................................................................................... 28

4.5 Conclusion ............................................................................................................. 30

5 Skills Supply .............................................................................................. 31

5.1 The Supply Infrastructure ..................................................................................... 31

5.2 Trends in Skill Supply: Individuals ...................................................................... 32

Higher education ................................................................................................................. 34

5.3 Employer Investment in Skills .............................................................................. 34

Managing people ................................................................................................................. 39

5.4 Migration ................................................................................................................. 39

5.5 Conclusion ............................................................................................................. 40

6 Skill Mismatches ........................................................................................ 41

6.1 Defining Skill Mismatches .................................................................................... 41

6.2 Evidence of employer reported skill deficiencies .............................................. 41

Causes, Impacts and Remedies ........................................................................................ 44

6.3 Under-employment ................................................................................................ 46

6.4 Wages ..................................................................................................................... 47

6.5 Conclusion ............................................................................................................. 48

7 Conclusion ................................................................................................. 49

7.1 The Sector Today and Tomorrow ......................................................................... 49

7.2 The Performance Challenge ................................................................................. 49

7.3 Growth through Skills ........................................................................................... 51

7.4 Business benefits .................................................................................................. 54

Table of Graphs and Charts Table 1.1 Four recent periods of recession in the UK .......................................................... 1

Figure 1.1 Employment and Gross Value-Added 1978 - 2020 ............................................... 3

Figure 2.1 Employment size distribution of tourism sub-sectors ........................................ 5

Table 2.2 Key Output and Employment Indicators ............................................................... 6

Figure 2.2 Trends in Employment and Output ........................................................................ 7

Figure 2.3 Employment by Occupation, Tourism, 2010 ......................................................... 8

Figure 2.4 Employment by Qualification, Tourism, 2010 ....................................................... 9

Figure 2.5 Size Structure of Employment (% of employment by employer size band) .... 10

Figure 2.6 Age Structure of Workforce .................................................................................. 11

Figure 2.7 Incidence of self-employment .............................................................................. 12

Figure 2.8 Incidence of part-time employment ..................................................................... 12

Figure 2.9 Incidence of temporary employment ................................................................... 13

Figure 2.10 Employment by Nation and Region (tourism sector) ......................................... 14

Figure 3.1 UK Golden Decade of Sport 2010-2019 ............................................................... 17

Figure 3.2 Links in the Service Profit Chain .......................................................................... 21

Table 4.1 Changing Pattern of Skill Demand ....................................................................... 27

Table 4.2 Changing Pattern of Skill Demand by qualification level .................................. 28

Figure 4.1 Net Demand, 2010 to 2020 .................................................................................... 29

Figure 5.1 Apprenticeship starts and achievements (all levels), 2002/03 to 2010/11 ....... 32

Table 5.1 Tourism apprenticeship starts by level and age, 2002/03-2010/11 ................... 33

Table 5.2 Number of employees in receipt of work-related training over the past 13 weeks ................................................................................................................................. 35

Figure 5.2 Percentage of employees in receipt of work-related training over the past 13 weeks ................................................................................................................................. 36

Table 5.3 Employer Investments in Skills ............................................................................ 37

Table 5.4 Further Indicators of Training Activity ................................................................ 38

Table 5.5 Investors in People accreditation ........................................................................ 39

Table 6.1 Skill Deficiencies.................................................................................................... 42

Figure 6.1 Occupational Distribution of Skill Shortages in Tourism .................................. 43

Figure 6.2 Occupational Distribution of Skill Gaps in Tourism .......................................... 44

Table 6.3 Earnings growth in the tourism sectors .............................................................. 47

GLOSSARY This report uses data from several sources and a slightly varying definition of the sector depending upon which data sources are available.

PRINCIPAL DATA SOURCES Employer Perspectives Survey 2010 (EPS 2010) The UK Commission’s Employer Perspectives Survey 2010 (Shury et al., 2011) gathered the views of approximately 14,500 employers on the UK’s employment and skills system. The aim of the survey is to provide evidence to stakeholders operating in the system across the four UK nations to inform policy and improve service delivery. http://www.ukces.org.uk/publications/er25-employer-perspectives-survey The UK Commission’s UK Employers Skills Survey 2011 (ESS 2011) The UK Commission’s UK Employer Skills Survey (UK Commission, 2012) provides UK-wide data on skills deficiencies and workforce development across the UK on a comparable basis. It was undertaken at the establishment level and involved over 87,500 interviews, with a follow up survey of over 11,000 employers focusing on employers’ expenditures on training. http://www.ukces.org.uk/publications/employer-skills-survey-2011

Working Futures Database Working Futures 2010-2020 (Wilson and Homenidou, 2011) is the most detailed and comprehensive set of UK labour market forecasts available. The results provide a picture of employment prospects by industry, occupation, qualification level, gender and employment status for the UK and for nations and English regions up to 2020. The database used to produce the projections is held by the University of Warwick Institute for Employment Research and Cambridge Econometrics. http://www.ukces.org.uk/assets/ukces/docs/publications/evidence-report-41-working-futures-2010-2020.pdf

Labour Force Survey The Labour Force Survey (LFS) is a quarterly sample survey of households living at private addresses in the United Kingdom. Its purpose is to provide information on the UK labour market that can then be used to develop, manage, evaluate and report on labour market policies. It is conducted by the Office for National Statistics. Figures quoted in this report are based on a four quarter average unless otherwise stated in the text. http://www.ons.gov.uk/ons/guide-method/surveys/respondents/household/labour-force-survey/index.html

SECTOR DEFINITIONS The definition of the sector used in this report is: Accommodation (SIC07 55: including hotels, self-catering accommodation and holiday parks); Food and beverage services (SIC07 56: including restaurants, event catering and public houses); Travel agencies and tour operators (SIC07 79); Gambling and betting (SIC07 92); and Sports activities and amusements parks (SIC07 93). Where the UK Commission’s Employer Skills Survey data is referenced, the sector definition is slightly different and covers Accommodation and food service activities (SIC55-56)

http://www.ukces.org.uk/publications/er25-employer-perspectives-survey

http://www.ukces.org.uk/publications/employer-skills-survey-2011

http://www.ukces.org.uk/assets/ukces/docs/publications/evidence-report-41-working-futures-2010-2020.pdf

http://www.ons.gov.uk/ons/guide-method/surveys/respondents/household/labour-force-survey/index.html

Executive Summary This report examines the tourism sector in the UK, the challenges it faces over the

medium term, how they can be addressed through skill development and how the sector

can grow and contribute to the recovery of the UK economy.

The sector comprises restaurants and bars (which employ just over half of all workers in

the sector), sport and recreation activities, hotels and other accommodation, travel

agencies and tour operators, and gambling and betting.

The importance of the sector

The UK’s tourism sector makes a significant direct and indirect contribution to the UK

economy. The net output of the sector in 2010 was £62 billion, six per cent of the UK

total. It grew by 5.6 per cent per annum over the previous decade, faster than the

economy as a whole. In addition to its direct contribution to national output, business in

other sectors sell to and purchase from the visitor economy, contributing as much again

to GDP. Employment in the sector accounted for around eight per cent of total

employment in the UK in 2010 (about 2.5 million people).

Britain is the seventh leading destination in the world in terms of revenue from inbound

tourists. The sector is projected to be one of the fastest growing in the UK over the next

ten years, with output projected to increase by over five per cent per annum. Employment

is also projected to grow, albeit at a slower rate of just over one per cent per annum,

indicating projected increases in productivity.

The 2.5 million people who work in the sector are less qualified than average, and over

one third work in elementary occupations, compared with one in ten workers overall.

Employment is concentrated among small workplaces, although the proportion of self-

employed workers is below the average for the whole economy. However, the sector

provides lots of opportunities for part-time and temporary employment. Female workers

outnumber male workers, although the proportion of women in the sector has been falling

over the last decade. The sector has a very young age profile, with one third of workers

aged under 25. A key issue for the sector is the relatively high rate of labour turnover.

Key Challenges

The sector has the potential to continue to expand over the coming decade and capitalise

on a series of sporting and other major events in the UK and the growing international

tourist market. However it faces growing international competition and is vulnerable to

exchange rate movements. Changes in technology and consumer demand will present

challenges to the tourism workforce to adapt and ensure excellent customer service.

Labour turnover is a significant challenge and the sector needs to develop and promote

progression routes for careers in the sector.

The government has announced ambitious plans for the sector, with two key goals:

• To become one of the Top 5 destinations in the world in terms of revenue from in-

bound tourists.

• For half of the tourism expenditure of UK residents to be spent in the UK rather

than overseas.

This vision is dependent on the sector being able to drive up its skill levels across the

workforce and introducing working practices and progression routes which will make it an

exciting sector in which to work, and in turn attract talented individuals into the sector.

Skill demand

The key drivers of skill demand in the sector over the medium term suggest that

employment will continue to expand to 2020 when the sector is expected to employ

289,000 more people than it did in 2010. In addition to filling the new jobs, because the

sector has a relatively high rate of labour turnover, tourism employers are expected to

have to replace over a million employees between 2010 and 2020. Taking new and

replacement demand the sector will need to recruit around 135,000 people a year.

Generally skill levels are expected to increase, although there will still be a large number

of opportunities for people with low level (ie level 1 and 2) qualifications. There will be

significant demand for management skills and customer service skills across the sector.

Under-employment refers to workers who are over-qualified or over-skilled (they do not

require their qualifications or experience to do their job). Nearly one quarter (24 per cent)

of employees in the sector are over-qualified, compared to 16 per cent across the whole

economy. Adopting High Performance Working (HPW) could increase opportunities for

task discretion as well as the variety of tasks undertaken by employees, allowing them to

use their skills more fully as so reducing under-employment.

Effective management skills can drive performance improvements in the sector by raising

productivity through better staff planning and scheduling, employing new technology and

improving employee motivation, thereby reducing staff turnover.

The need for improved customer service skills will be driven by increasing customer

expectations. Businesses will need to create a consumer-focused culture, driven from the

top down by leaders and supervisors. There will also be specific skill needs for

technology professionals and technical staff as technological developments lead to new

ways for business to interact with customers.

Skills supply

The evidence suggests a mixed picture regarding skills supply to the sector. The number

of apprentices in the sector has been rising rapidly in recent years, as has the number of

students studying tourism-related degrees. However the numbers are still small relative to

the potential demand. In 2010/2011 some 9,500 people completed a relevant

apprenticeship and about the same number graduated with a tourism-related degree –

only a fraction of the 135,000 people that the industry is likely to need to recruit each

year.

On workplace training, the sector has one of the highest training expenditures per

employee, although much of this expenditure is on initial training of recruits due to the

high labour turnover within the sector. While the proportions of employers who arrange

training for their staff, and arrange training towards nationally recognised qualifications,

are slightly above the averages across the economy as a whole, there is some evidence

that the proportion of the sector workforce that receives training is below average, and

has been falling in recent years. Tourism employers are also less likely than those in

other sectors to engage with external training providers, particularly higher education

providers. However, involvement with apprenticeships has increased dramatically in the

last few years, and a higher than average proportion of employers are accredited with

Investors in People.

The high labour turnover in the sector can hamper skills development. A key reason for

high levels of turnover is the historic recruitment of transient labour, such as students and

international workers, who are seeking short-term job opportunities rather than long-term

careers in the sector. A reliance on transient workers can reduce the effectiveness of

skills development activities, such as employee engagement, and may result in a vicious

circle where high labour turnover undermines employee engagement activities, which

leads to a demotivated workforce and contributes to higher labour turnover. This can be

exacerbated if staff do not receive appropriate training, and do not perceive there to be

clear career pathways within the sector.

Conclusion: growth through skills

There is evidence that the demand for labour across the sector is outstripping supply.

Currently skill shortages and gaps are predominantly concentrated among elementary

occupations, and mainly around customer service skills. While addressing these

shortages and gaps directly will improve the situation for the sector, sustainable

improvements will come from developing management skills, particularly the people

management skills of first line managers and supervisors.

The sector faces a number of key skills challenges including:

• Raising productivity levels

• Securing sufficient supply of skills to the sector to meet expected high levels of

expansion and replacement demand

• Improving employee engagement and motivation and minimising labour turnover, so

that employers and employees can reap the benefits of training and improved

customer service

• Continually improving the skill base of existing staff to minimise skill gaps and make

up for skill shortages. This will include investing in management skills and customer

service skills.

Employers across the sector can engage in a range of activities to ensure their future

growth through investing in skills by:

• Helping to improve information, advice and guidance to people thinking of working in

the sector and providing efficient ways of matching potential recruits to employers.

• Growing the number of apprenticeships to provide a stronger supply of people to fill

skills shortages and gaps in elementary occupations, and offering pathways to

supervisory and management roles for young people in the sector.

• Broadening their recruitment pools – in additional to recruiting young people straight

from education, whose numbers will be falling over the coming decade, employers will

need to look to alternative labour pools to meet their recruitment needs, such as

women returners and early retirees.

• Improving management training – management skills are crucial for the sector to

make the most of the market opportunities available and in particular to engage and

motivate staff to ensure high levels of performance and minimise labour turnover.

• Raising levels of employee engagement and customer service – management

training is not the only way to improve employee motivation and performance.

Employers can develop their own approaches to employee engagement and/or use

support programmes, such as Smiles of Britain (developed by the National Skills

Academy for Hospitality).

1

1 The Economic and Policy Climate Increasingly, the competitiveness of advanced industrial nations is explained with

reference to the capabilities of their respective labour forces. Hence, national education

and training systems are seen as providing comparative economic advantages. It is

notable that over the recent past education and training have taken centre stage in

policies designed to foster the UK’s competitiveness and lie at the heart of the current

Government’s plans to kick start the recovery against a backdrop of challenging global

economic conditions. To understand the role skills development might play in stimulating

growth within the tourism sector requires some consideration of the current economic

situation and current skills policy.

In 2012 the UK economy, and indeed the global economy, is still coming to terms with the

repercussions of the 2008/9 economic recession. By comparison with previous

recessions, 2008/9 was relatively deep and it continues to cast a long shadow over the

country’s medium-term economic prospects (see Table 1.1). The economic climate at

the time of the 2008/9 recession and in the period afterwards has been characterised by

low interest rates and a depreciation of sterling against other currencies, notably the

dollar and the euro. Whilst these would usually be sufficient to give a fillip to the

economy by boosting demand and, given time, increasing output, the potential for export

led growth has been seriously undermined by continuing weak demand conditions across

the global economy, especially in the Eurozone and the USA. Also the difficulties

households and businesses have had gaining access to finance as the banks have

sought to increase their capital has restricted growth. Moreover, the markets’ continuing

disquiet over developments in the Eurozone has contributed further to the climate of

uncertainty in the global economy thereby further dampening demand.

Table 1.1 Four recent periods of recession in the UK

Start date Date of bottom

of recession

Length of period from

start to bottom of recession

Total decline in GDP (%)

Time taken for GDP to

recover to level at start of

recession

1 1974 Q4 1975 Q3 4 Quarters 3.8 7 Quarters



4 2008 Q2 2009 Q1 6 Quarters 6.3 ?

Source: Office of National Statistics Quarterly Economic Accounts 1975, 1981, 1993, and 2010

2

As a consequence of the above developments, the rapid acceleration in growth observed

after the recessions of the early 1980s and 1990s has failed to materialise. Nevertheless

the economy is expected to resume its long-run growth path over time (see Figure 1.1)

but in order to do so there are specific steps the UK economy needs to take. The UK

Treasury has identified a number of weaknesses which need to be addressed if a

sustained recovery is to be achieved (BIS, 2011):

1 the level of debt funded household consumption;

2 the share of the economy accounted for by the public sector;

3 weak business investment;

4 an over-dependence upon financial and business services; and

5 unbalanced regional growth.

Government has identified four ambitions which need to be realised in order to restore

long-term sustainable growth (BIS, 2011):

1 creating the most competitive tax system in the G20;

2 making the UK one of the best places in Europe to start, finance and grow a

business;

3 an over-dependence upon financial and business services; and

4 creating a more educated workforce that is the most flexible in Europe.

Therefore, the role of skills in national economic policy is clearly an essential one; to bring

about recovery and sustainability by creating jobs and growth.

From the employer’s perspective there is a need to adapt to both global demand side

conditions and the consequences which are likely to arise from policies designed to

rebalance the UK economy. Depending upon the sector there are likely to be a number

of skill-related performance challenges which employers will need to address as they

seek to consolidate existing markets, develop new ones, and introduce technical and

organisational changes to improve their competitiveness. The importance of these

challenges become even more apparent if one considers the role of skills in the economic

cycle. Evidence demonstrates that the recovery from previous economic recessions was

hampered by skills shortages, and that these skill shortages then contributed to further

downturns in the economy (Blake et al., 2000). Therefore, the message is clear: a failure

to invest sufficiently in skills now has the potential to dampen future growth.

3

Figure 1.1 Employment and Gross Value-Added 1978 - 2020

20000

22000

24000

26000

28000

30000

32000

34000

400000

600000

800000

1000000

1200000

1400000

1600000

Empl

oym

ent (

000s

)

GVA

(£m

)

GVA (£2006m)Employment (000s)

Source: Wilson and Homenidou (2011)

At a time when capital investments are constrained as a consequence of problems in the

global banking system, investments in skills, and human resources more generally, made

through programmes such as Apprenticeships and Investors in People, and funded

through initiatives such as the Growth and Innovation Fund, may be the most amenable

to employers.

Based on the latest evidence available, this report considers the specific situation in the

tourism sector to provide:

1 an overview of the size and structure of the sector and the principal drivers of

change over the medium term which are likely to have some bearing upon skill

demand;

2 an outline of current and expected patterns of skill demand in the sector;

3 a description of skills supply and how this has adapted to changing patterns of skill

demand;

4 an analysis of mismatches between the demand for, and supply of skills, and the

implications of this for the sector.

In conclusion, the report identifies the performance challenges faced by the sector and

highlights the skills solutions available to address them thereby delivering increased

levels of growth and contributing to the recovery of the UK economy.

4

2 The Importance of the Sector The tourism sector makes a significant contribution to the UK economy. It directly

accounts for around six per cent of UK GDP, and businesses in other sectors selling to

and purchasing from the visitor economy contributes as much again to GDP. The sector

employs around 2.5 million people, approximately one in 12 of the working population.

Each UK nation has a tourism strategy which aims to ‘raise the ambition of tourism over

the next decade’ (People 1st, 2010a). The tourism sector was one of eight key sectors

addressed in the Government’s first growth review (BIS, 2011).

The sector is made up of a number of sub-sectors:

• Accommodation (SIC07 55): including hotels, self-catering accommodation and

holiday parks

• Food and beverage services (SIC07 56): including restaurants, event catering and

public houses

• Travel agencies and tour operators (SIC07 79)

• Gambling and betting (SIC07 92), and

• Sports activities and amusements parks (SIC07 93).

In addition, sub-sectors include many businesses that are not solely driven by tourism,

and may not identify themselves as being in the tourism sector.

The share of total employment in each of the sub-sectors is shown in Figure 2.1.

Restaurants and bars make up about half of the overall sector in terms of employment.

Accommodation and sports and amusements each employ about a fifth of the sector’s

workforce, while travel and tour operators and the gambling sub-sector are much smaller.

The occupational profile, skills needs and client base of these sub-sectors (and further

sub-divisions) differ, and the impact of macroeconomic conditions for each also varies.

Differences are considered in more detail in later sections of the report.

5

Figure 2.1 Employment size distribution of tourism sub-sectors

17%

52%

21%

4%

6%

Hotels and otheraccommodationRestaurants and bars

Travel agencies and touroperatorsGambling and betting

Sport and recreationalactivities

Source : Labour Force Survey (ONS 2010)

2.1 Overall Output and Employment Performance

Table 2.2 highlights key output and employment indicators for the tourism sector over the

last ten years, and for the coming decade. The sector contributed £62 billion in 2010

(2006 prices), about five per cent of total GVA. This has grown over the ten years to

2010, with output increasing by over 11 per cent between 2000-2010. Output growth is

projected to increase by nearly 32 per cent over the coming decade, equivalent to 2.8 per

cent per year.

Turning to the employment performance, the sector’s workforce grew slowly throughout

the last decade, at 0.6 per cent per year (compared to 0.4 per cent for the economy as a

whole). However, the number of women employed in the sector fell between 2000 and

2010, by an average of 0.7 per cent per year, while the male workforce grew by over two

per cent per year. Employment growth was more marked among the self-employed than

among employees, and among full-time workers. Future employment growth is expected

to be broadly similar between men and women at just over one per cent per year (twice

the whole-economy average of 0.5 per cent), and between full-timers and part-timers.

The self-employed workforce is projected to shrink slightly, by 0.3 per cent per year.

6

Table 2.2 Key Output and Employment Indicators

Tourism 2010 level

Growth rate: 2000-

2010 (% p.a.)

Changes (absolute)

Growth: 2010-2020

(%)

Growth rate:

2010-2020 (% p.a.)

Changes (absolute)

Output (£2006m) 56,341 1.1 5,747 70.9 5.5 44,222

Employment 2,551,995 0.6 137,237 11.3 1.1 288,757

Part time employment 1,218,805 0.2 24,789 13.7 1.3 167,076

Full time employment 1,073,395 0.6 65,851 12.0 1.1 128,783

Self employment 259,795 2.0 46,597 -2.7 -0.3 -7,102

Male employment 1,226,186 2.2 239,762 10.5 1.0 128,531

Female employment 1,325,809 -0.7 -102,525 12.1 1.1 160,226


Employment in the sector has been affected somewhat by the macro-economic

performance of the economy as a whole, with employment levels falling since 2008,

although they are expected to bottom out in 2012 and then increase to 2020 (see Figure

2.2).

Productivity

Productivity in the sector is lower than average. GVA per person employed was £20,000

across the sector as a whole in 2010, compared with £34,000 across all sectors.

Gambling and betting has the highest GVA per person (£58,000) followed by travel and

tourism (£54,000) and accommodation (£24,000). Sports and amusements (£20,000) and

particularly restaurants and bars (£14,000) are the least productive areas of the sector

(UKCES, forthcoming). Research by People 1st and others suggest a link between low

levels of qualifications in the sectors (see section 2.2) high labour turnover and low levels

of productivity (UKCES forthcoming).

7

Figure 2.2 Trends in Employment and Output

Tourism

0

500

1,000

1,500

2,000

2,500

3,000

1990 1995 2000 2005 2010 2015 2020

Employment (000s)

0

20,000

40,000

60,000

80,000

100,000

120,000

Output (£2006m)

Employment Output


2.2 Employment Structure

Jobs in the tourism sector tend to be concentrated towards the lower end of the

occupational scale, and nearly half of all jobs are part-time. The workforce is generally

young, and less qualified than the workforce as a whole. In this section we look in more

detail at the employment structure of the sector (as at 2010).

Employment by occupation and qualification level

Over one-third of the tourism workforce are in elementary occupations, such as kitchen

assistants, waiters, bar staff and cleaners, as Figure 2.3 shows. This compares with one

in ten workers across all sectors in elementary occupations. There are also over-

representations of managers (managing hotels, restaurants and public houses), and

skilled trades workers (for example chefs) in the tourism sector. Managers make up 15

per cent of the tourism workforce, compared with 10 per cent across all sectors, and

skilled trades workers make up 14 per cent of the tourism workforce, compared with 12

per cent across all sectors. There are relatively few professional workers in the tourism

sector, comprising just five per cent of the total workforce compared with 19 per cent of

all workers.

8

Figure 2.3 Employment by Occupation, Tourism, 2010

14.8

4.8

7.8 8.5

14.0

6.0 6.4

2.7

35.1

9.9

19.2

12.9 12.1

8.0 8.66.4

10.411.6

0

5

10

15

20

25

30

35

40

Managers,directors

and seniorofficials

Professionaloccupations

Associateprofessional and technical

Administrativeand secretarial

Skilled tradesoccupations

Caring, leisure and otherservice

Sales andcustomerservice

Process, plantand

machineoperatives

Elementaryoccupations

% o

f tot

al e

mpl

oym

ent

Tourism Whole economy


Turning to the qualification profile of the sector’s workforce, only one in five workers (21

per cent) have a higher education qualification, compared with one in three workers (34

per cent) across all sectors. The proportions of the sector workforce with school, college

and other qualifications are above the overall averages, as is the proportion with no

qualifications (13 per cent, compared with nine per cent of all workers).

A comparison over time suggests that the sector is not becoming any relatively more

qualified than the rest of the UK’s workforce. For example, between 2002 and 2010 the

proportion of employees with a level 4 qualification in the economy as a whole rose from

28 per cent to 37 per cent, a rise of about a third. Over the same period the proportion in

the tourism sector rose at a similar rate, but from a much lower base, from 15 to 20 per

cent.

9

Figure 2.4 Employment by Qualification, Tourism, 2010

3.6

17.1

22.924.6

18.6

13.2

9.3

25.0

21.019.8

9.3

15.5

0

5

10

15

20

25

30

QCF 7-8 Postgraduate

QCF 4-6 First Degree/Other HE

QCF3 A level & equivalent

QCF2 GCSE (A-C)

& equivalent

QCF1 GCSE(below

grade C) &equivalent

No qualification

% o

f tot

al e

mpl

oym

ent



Employment by size of employer

The distribution of employment by size of employer in the tourism sector is shown in

Figure 2.5. The sector is dominated by small and micro employers, with over half of the

workforce (57 per cent) working in organisations with fewer than 25 employees. This

compares to the proportion across all sectors of 36 per cent. Less than four per cent of

tourism employees work in organisations with 500 or more employees, compared to 18

per cent in the economy as a whole.

Between 2006 and 2010, the number of establishments in the sector rose by two per

cent, in line with the rest of the economy, with a rise in the number of restaurants and a

decline in the number of public houses. Over 5,700 licences to sell alcohol were

surrendered in 2010, double the number in 2007 (Big Hospitality, 2011).

10

Figure 2.5 Size Structure of Employment (% of employment by employer size band)

57.4

17.5

18.1

3.5

3.5

35.8

13.4

24.5

8.9

17.5

0 10 20 30 40 50 60 70

Under 25

25 to 49

50 to 249

250 to 500

500 or more

% of total employment

Tourism

Whole economy

Source: Labour Force Survey (ONS, 2010)

Employment by gender

Women made up just over half (52 per cent) of the sector workforce in 2010, although the

proportion has been falling in recent years, and is down from 59 per cent in 2000.

Employment by age

Figure 2.6 shows the age structure of the tourism workforce in comparison with the

overall workforce. The sector has a much younger age profile than the workforce as a

whole, with one third of workers aged under 25, compared to the average across all

sectors of 13 per cent. In the workforce as a whole the largest group is those aged 45 to

59, who make up one third of all workers, whereas in the tourism sector this age group

accounts for only 19 per cent of the total.

11

Figure 2.6 Age Structure of Workforce

33.2

23.6

17.7

19.7

3.4

2.4

12.9

24.4

32.3

5.7

2.9

21.9

0 5 10 15 20 25 30 35

Under 25

25 to 34

35 to 44

45 to 59

60 to 64

65 and over

% of workforce

Tourism

Whole economy


2.3 Employment status and working patterns

Although some parts of the tourism sector (such as bed and breakfasts, and restaurants)

are characterised as having high rates of owner businesses, the proportion of self-

employment across the sector as a whole is below average, at 11 per cent compared to

13 per cent across all sectors (see Figure 2.7). However, the incidence of self-

employment has been growing faster in the tourism sector than across all sectors (an

increase of 1.4 percentage points between 2002 and 2009 compared to the overall

increase of 1.2 percentage points).

12

Figure 2.7 Incidence of self-employment

56789

101112131415

2002 2003 2004 2005 2006 2007 2008 2009

% o

f tot

al e

mpl

oym

ent

Tourism All sectors

Source: Labour Force Survey (ONS, 2010); UKCES (2011)

The tourism sector relies heavily on part-time labour, with part-time workers making up 45

per cent of the sector’s workforce in 2009, compared to the average across all sectors of

26 per cent. Bar and restaurant staff in particular tend to be employed on a part-time

basis. Part-time employment in tourism had been on a downward trend between 2002

and 2007, before rising sharply to 2009 with the onset of the recession and decrease in

full-time employment (see Figure 2.8). Nevertheless, the still sector has the lowest

proportion of full-time staff (55 per cent) of any major UK sector.

Figure 2.8 Incidence of part-time employment

0

10

20

30

40

50

2002 2003 2004 2005 2006 2007 2008 2009

% o

f tot

al e

mpl

oym

ent

Tourism All sectors


13

The sector also has a strong tradition of using casual and short-term labour, with almost

one in ten workers on temporary or short-term contracts, much higher than the proportion

in the workforce as a whole of around five to six per cent (see Figure 2.9).

Figure 2.9 Incidence of temporary employment

0123456789

1011

2002 2003 2004 2005 2006 2007 2008 2009

% o

f tot

al e

mpl

oym

ent

Tourism All sectors


Labour turnover

The sector has a high rate of labour turnover. Research by People 1st found that in pubs,

bars and nightclubs the rate of annual turnover was 31 per cent in 2009 and 23 per cent

in 2011, one of the highest among any UK sector. Rates within travel and tourism were

much lower at 16 per cent (People 1st, 2011).

2.4 Distribution of Employment by Nation and Region

Figure 2.10 shows the geographical distribution of employment in the tourism sector.

Employment is concentrated in England, as it is across all sectors, and within England

there is good representation in each of the regions. Compared to the distribution of total

employment, tourism employment is over-represented in Wales (five per cent of total

employment compared to four per cent for all sectors) and Scotland (ten per cent

compared to eight per cent for all sectors.

14

Figure 2.10 Employment by Nation and Region (tourism sector)

18

17

12

11

9

8

9

14

3

5

10

3

0 5 10 15 20

London

South East

East

South West

West Mids

East Mids

Yorks/Hum

North West

North East

Wales

Scotland

NI

% of total employment


2.5 International Standing of the Sector

The UK is currently the seventh leading destination in the world in terms of revenue from

inbound tourists, and the government has announced an ambition for the country to break

into the top five. However, according to Futurebrand’s Country Brand Index, the UK has

(for the first time since the study began seven years ago) fallen out of the top ten overall

ranking. The index ranks a number of countries on a variety of different scales, including:

value systems, quality of life, good for business, heritage and culture and tourism. The

UK performs relatively poorly in areas such as value for money (Futurebrand, 2011).

In first position in the Country Brand Index’s overall rankings is Canada, helped in part by

country brand development for the Vancouver 2010 Winter Olympics. The UK therefore

has an opportunity to improve its ‘brand image’ through its hosting of the London Olympic

2012 (UKCES, forthcoming).

15

International comparisons of productivity in the tourism sector suggest that the UK lags

behind the US and particularly France, although caution should be used in making such

comparisons, as each country classifies sectors and estimates of labour productivity

differently (O’Mahony and de Boer, 2002). Analysis of European hotels data for the

period from February 2008 to July 2010 shows that London achieved higher occupancy,

higher room rates and at the same time higher labour productivity levels than other

European cities such as Amsterdam, Berlin, Budapest, Munich, Paris, Prague, Vienna

and Warsaw (People 1st, 2010a).

2.6 Conclusion

The tourism sector makes a significant contribution to the UK economy, directly through

output and employment, and indirectly through other businesses selling to and

purchasing from the visitor economy. Over the past decade the sector has been growing

significantly faster than the economy as a whole, but there are indications that it is

slipping back relative to other countries as a destination of choice and productivity is

relatively low.

The structure of employment in the sector differs from the rest of the UK economy with a

high number of small workplaces and a relatively low level of self-employment. The

sector has a relatively young workforce and high levels of part-time and temporary

employment, which offer opportunities for young people to enter the labour market.

However, the sector has a relatively low qualification profile and low levels of skill are

likely to contribute to low productivity. A key issue for the sector is the relatively high rate

of labour turnover.

In the next two sections we look at the developments facing the sector in the coming

years and their implications for skills, before considering whether the supply of skills will

meet future demand.

16

3 Key Developments in the Sector over the Medium Term

The previous chapter demonstrated the success that the sector has experienced over the

last few years. Continuing that trajectory will depend on the sector’s ability to capitalise on

future technological and business developments.

In the short-term, the impact of the economic downturn will have implications for the

sector’s performance. Issues such as global competition and changing consumer

demand will continue to present challenges and many will become increasingly important.

This section considers these key developments.

3.1 The recession and recovery

The economic downturn affected the sector in a number of ways, with declining customer

bases in both leisure and business markets, reduced consumer expenditure, rising costs,

and changes in exchange rates having major impacts throughout the sector. The

performance in different parts of the sector has been mixed, with lower cost areas such

as fast food, budget hotels and self-catering accommodation performing relatively well

(People 1st, 2010a).

Although many businesses found that trading conditions improved from the second half of

2009, it is likely that the recession will impact on consumer spending and confidence for

some time. Employer strategies to cope with the economic downturn have focused on

asking existing staff to work shorter hours, not replacing permanent staff that leave,

reducing the money spent on recruitment, and cancelling plans to expand the number of

permanent staff (People 1st 2010b). However, the downturn may result in more domestic

visitors staying in the UK, which may mitigate the reduction in demand for labour or even

lead to increased demand for labour in certain parts of the sector and the country.

17

3.2 Investment and innovation

Since the start of the recession investment in the sector has fallen, in line with the rest of

the economy. Data from the Office of National Statistics shows that in 2011 the hotel and

restaurant sector invested some £4 billion, some 15 per cent less than in 2008 and about

three per cent of all business investment in the UK. A lot of recent investment in the hotel

sector has been connected to providing facilities of the forthcoming Olympic Games in

London. For example, Travelodge are reported to have plans to open 26 new hotel

facilities in the London area in 2011 and 2012.

The rest of the decade provides a range of opportunities for similar levels of investment.

These include a number of international sporting events to be held across the UK during

the Golden Decade of Sport (see Figure 3.1), as well as other major events such as the

Queen’s Diamond Jubilee celebrations and the 2013 City of Culture in

Derry/Londonderry. The Government plans to support the sector with a co-funded

£100milion campaign aimed at attracting four million additional visitors to the UK by 2015

(DCMS, 2011).

Figure 3.1 UK Golden Decade of Sport 2010-2019

Source: SkillsActive (2010)

3.3 Technology

Investment is not just related to capital projects, but also to the adoption of new

technology. Over the past ten years the importance of technology to enhance service and

attract customers and visitors has increased. This is set to continue, and there is likely to

be greater integration between technologies such as mobile phones and computers.

18

Key areas of technological development that are likely to impact on the tourism sector

over the next few years include:

• Online booking and mobile technology – Businesses will increasingly interact with

the customer online, through bookings, promotion and after-service. In particular,

mobile phone technology is now used to target customers who are ‘connected’ at

all times, and access to consumers via this method will grow significantly. This

may enable businesses to foster greater loyalty, but they need to ensure websites

are mobile-friendly to maximize the benefits. In the travel and tourism sector,

online developments are likely to continue to represent a threat as well as an

opportunity, as customers increasing book holidays via the internet rather than

through tour operators (People 1st, 2010a).

• Customer Relationship Management (CRM) – building and maintaining

relationships with the customer online will become increasingly important.

Different ways of building customer relationships is something businesses need to

do to stay ahead of the competition (People 1st, 2010a).

• Online social networking – social networking is becoming part of the mainstream

and is now a growing phenomenon among older age groups as well as young

adults. Tourism sector businesses will need to tap into this (see People 1st,

2010a).

• Data security – certain parts of the sector (hotels, travel businesses) are

increasingly storing large amounts of personal data on customers. Businesses

need to be clear about their data protection responsibilities and ensure measures

are in place to protect customer data. In the gambling sector, security will need to

grow in sophistication to tackle ever more innovative fraud (People 1st, 2010a).

• Enhancing the customer experience – as budget hotel chains roll out flat screen

TVs and wireless broadband, higher-end businesses will increasingly need to use

technological advances to enhance customers’ experiences. The use of smart

card technology is set to increase in restaurants and bars, and store information

on customers’ purchasing habits and allow customers to pay without going

through traditional payment processes. Use of smart cards may also increase in

the gambling sector, as they are currently used widely in the European casino

industry (People 1st, 2010a).

19

3.4 Global competition

Tourism is primarily a domestically provided service, meeting the needs of consumers

located in the UK. The success of the sector therefore relies on serving UK-domiciled

consumers, encouraging them to eat, drink and seek entertainment outside the home and

not to take holidays abroad, as well as encouraging overseas visitors to the UK.

Perceptions of value for money and the relative purchasing power of the pound compared

with other currencies are important. The general decline in the value of sterling in the last

few years has made the UK a relatively competitive destination. However in recent

months sterling has gained in strength and is currently (May 2012) worth ten per cent

more than a year ago compared to the euro. The stronger sterling remains the more

expensive it is for visitors to come to the UK and cheaper for UK citizens to take holidays

abroad. Increases in holidays abroad will benefit overseas tour companies, although as

we have seen, they comprise a relatively small part of the overall sector.

Despite the current global economic uncertainty, long-term forecasts are for global

international arrivals to reach nearly 1.6 billion by the year 2020. Europe is expected to

have the highest total of tourist arrivals (717 million tourists) worldwide, with long-haul

travel expected to grow faster (5.4 per cent per year over the period 1995–2020) than

intra-regional travel (3.8 per cent) (UNWTO, 2001).

As the world population continues to grow, its middle class is projected to grow too

(People 1st, 2010a). This is likely to benefit the UK as a tourism destination as more

people are able to travel to the UK. For example, Gross Domestic Product (GDP) per

capita in China will more than double between 2010 and 2015, providing the population

with greater disposable income to spend on hospitality (People 1st, 2010a). The travel

patterns of middle classes of China and India are set to move from domestic to regional

to international. India alone is forecast to have 50 million outbound tourists by 2020

(Deloitte, 2010). Understanding the desires and motivations of Chinese and Indian

travellers will be fundamental to success in these markets.

3.5 Consumer demand

Changing consumer trends are hard to predict and are in large part influenced by many of

the other drivers outlined in this section. Consumer research suggests that affluent will

continue spending on non-essential luxury and durable goods that offer ‘emotional value’

(People 1st, 2010a). Retired baby boomers may take more adventure-style holidays,

which they have seen their children do in gap years and on volunteering holidays. Travel

operators will need to tap into understanding and appealing to this section of the

population.

20

Customers are becoming less destination driven and increasingly experience driven,

meaning that what to do is becoming more important than where to go. In food, drink and

holidays for instance, consumers are searching for real experiences and products with

provenance and authenticity. In general, consumers are becoming harder to categorise

and no longer fit into neat boxes. For example, a customer may stay in a five star hotel,

but use budget airlines and eat in fast food outlets. (People 1st, 2010a).

Consumers are also seeking more sophisticated dining opportunities, driving up quality in

the restaurant market. Hotels and restaurants are co-branding, and this trend is likely to

increase in the coming years. Brands provide reassurance (consumers know what to

expect). This poses both a challenge and an opportunity to smaller, independent

operators (People 1st, 2010a).

Over eight million adults currently participate in sport and active recreation (21 per cent of

the adult population) (SkillsActive, 2010). Significantly, however, rates of participation in

physical activity decrease with age, with a sharp drop-off among teenagers, partly for

lifestyle reasons, but also because they must be proactive in finding active leisure

opportunities once they leave school. Family activity is a growing focus of health and

fitness, as it is felt that children need parental encouragement to pay attention to fitness

and health. The proportion of people over the age of 45 participating in sport increased

from 18.1 per cent in 2005/06 to 19.1 per cent in 2007/08 (Sport England, 2009).

In health and fitness, a key feature of the last ten years has been the rise of fitness

activities in private health clubs or at sports clubs with added fitness facilities. Consumer

expectations in terms of value for money and choice have increased. However, consumer

society remains polarised, with health-conscious, super-fit consumers at one end of the

scale, and inactive and often overweight consumers at the other (SkillsActive, 2010).

3.6 Environment

Sustainability will become a key issue for the hospitality, leisure, travel and tourism sector

by 2015, and by 2030 will be a central and normal part of sector operations (People 1st,

2010a). The need to reduce carbon emissions will increase the focus on the design and

installation of materials to reduce energy consumption, while there is a growing risk of

resource shortages or price increases as world consumption continues to grow.

21

3.7 Strategic management skills

Managers can play a key role in increasing productivity and profitability by anticipating

and reacting to developments affecting the sector, and ensuring that staff are engaged

and motivated. The service profit chain theory advocates that motivated employees, who

are happy in their jobs, are more likely to provide good customer service, which leads to

satisfied customers and ultimately greater profit (Haskett et al. 1994). While most

employers are conscious of the link between good customer service and increased

business and profitability, they may be less clear about the link between motivated

employees and satisfied customers (see Figure 3.2).

Figure 3.2 Links in the Service Profit Chain

Source: Heskett et al, 1994

Employee engagement is critical in helping businesses to maximise the potential of their

staff. While the majority of tourism businesses feel their employees are quite engaged or

very engaged at work, some businesses do little to engage their staff, mainly as they do

not believe their employees intend to stay in the job. Management quality (in particular

line management) is key to high levels of employee engagement (Robinson and Hayday,

2009). Other employee engagement interventions (flexible hours or working patterns,

employee involvement practices such as appraisals and consultations, or financial

incentives and bonuses) can, if done successfully, also benefit both the individual and the

business. Benefits to the individual include improved performance and ability to cope with

workload or work-related problems, greater loyalty to the company and greater personal

well-being. Benefits to the business include improved organisational performance,

improved customer service and lower customer complaints, and lower sickness absence

and reduced staff turnover.

22

3.8 Role of skills in overall competitiveness

The sector is likely to face a number of challenges over the coming decade as consumer

demand and expectations increase. Technology offers opportunities to develop new

services and enhance existing ones. The potential is there for the sector to continue to

expand in both economic and employment terms. The likelihood of that happening will

depend, at least in part, on the ability of sector managers to understand and exploit the

strategic opportunities available and motivate their employees to continually improve their

skills and level of performance. Employees’ skills will need to be refreshed to meet new

demands, and their customer service skills will need to be enhanced to ensure that

domestic and overseas tourists have a fulfilling experience.

23

4 Employment and Skill Demand in the Sector

4.1 The Changing Demand for Employment

Sector employment is predicted to increase by nearly 300,000 people by 2020. The share

of part-time working has increased significantly. The proportion of temporary workers has

also increased rapidly recently. In this section we examine the implications for the

demand for skills and employment across the sector from the broad trends outlined in the

previous chapter.

4.2 Factors Affecting the Demand for Skills

The National Strategic Skills Audit (UKCES, 2010) identifies a number of key drivers that

will impact on the demand for skills in the future. These drivers are interdependent and

the dynamic interplay of these means that the future skill requirements are not certain. A

number of the key trends were identified in the previous chapter. The implications of

these and other more detailed drivers for the demand for skills are explored here.

Policy, regulation and legislation

There are a number of key policy issues that are likely to affect the demand for skills in

the sector.

• Migration – the sector has traditionally filled vacancies through migrant labour and

Asian and Oriental restaurants in particular are heavily dependent on recruiting

workers from outside the European Union (EU). Government policy in the next

five years is likely to restrict employers bringing in skilled workers from outside of

the EU.

• Government expenditure constraints – These is likely to result in less moneybeing

invested in sector-specific schemes. Employers are likely to have to invest greater

amounts of their own money in education and training, as public sector subsidies

become more difficult to sustain in the medium-term.

• Health, fitness and sport – the Public Health White Paper ‘Choosing Health:

Making healthy choices easier’ (2004) and the accompanying physical activity

action plan (Choosing Activity, 2005) set out the aim of marketing and promoting

healthy lifestyles through the voluntary and independent sector. Each UK nation

has sport and recreation strategies aimed at increasing sports participation and

reducing the post-16 drop off in sport/physical activity (Skillsactive, 2010).

24

• Legislation – there are a number of areas of legislation and regulation with which

employers in the sector have to comply, notably health and safety, food safety,

and licensing laws. Managers and supervisors may lack knowledge if these

requirements and the skills needed to ensure compliance. Employers in the

health, recreation and outdoors sectors identify a range of challenges including

insurance, minibus driving, ensuring facilities are fit for purpose, employment law,

planning/public rights of way and associated regulations. The cost of compliance

is also an area of concern. There is also some evidence of an increased

‘compensation culture’, which increases risk for outdoors organisations.

Maintaining interest in the outdoors in an increasingly risk averse society is a

challenge (Skillsactive, 2010).

Technology

The technological changes outlined in Chapter 3 are likely to affect employment and skills

in the sector in three ways:

• Increased roles for technology professionals within the sector, as larger

businesses recruit web designers and other staff. Smaller businesses are likely to

find these specialist skills by outsourcing to specialist agencies.

• Increased in communication or marketing roles using technology to manage and

maximize the use of customer-generated data. Managers and customer-facing

staff will have to use a variety of new technologies, and develop the required

technology skill alongside customer service skills.

• Managers will need to have a good understanding of technology to manage the

adoption, integration and use of new technology, and of the importance of

technology in maximizing business opportunities. There will be more emphasis on

them training staff to use technology, and monitoring customers’ interaction with

technology. In addition, new cooking techniques (such as sous-vide cooking)

require chefs and other kitchen staff to adapt their skills to ensure that they apply

the new techniques efficiently and safely.

25

Consumer demand

The consumer trends outlined in Chapter 3 mean that customer service skills will

continue to grow in importance (People 1st, 2010a). Businesses need to adopt holistic

approach to customer service, such as ensuring organisational culture reflects customer

needs and that managers support and empower front line staff to reflect the needs of

their customers. The trends also put more focus on brand design. While larger

businesses are likely to have dedicated teams to manage specific brands, smaller

operators need to have greater knowledge and skills to keep their brands fresh and

reflect the needs of their target customer base.

There is also likely to be a focus on chefs who can cook using fresh ingredients from

scratch, and more transparent preparation and cooking at an establishment level, rather

than in a centralised kitchen. In some cases, there will be a continuation of the fusing

between kitchen and front-of-house roles, where staff do both (UKCES, forthcoming).

Environmental

Managers will need to have a greater awareness of energy costs as well as an

understanding of the solutions. As technology to monitor energy usage becomes more

widespread, managers will be expected to manage energy levels and costs using these

tools. Managers will also need to support and monitor their staff’s energy usage. Larger

businesses are likely to increase the number of dedicated staff to plan and manage

energy costs and sustainability.

As sustainability and climate change have an increasing impact on consumers’ choice of

destination, travel agents will need to have knowledge of environmentally friendly

destinations and tour operators are likely to increase their development and marketing of

these types of products.

Demographic change

Demographic changes are likely to increase the potential domestic customer base at the

same time as reducing the traditional labour pool of young workers.

The so-called baby boomer generation (those aged 45–64) will retire in greater numbers.

Their relatively high levels of disposable income will benefit the sector as they continue to

go on holidays and go out to eat and drink (Deloitte, 2007). Consumers aged 50 and over

can be more complex in their preferences than their younger counterparts (People 1st,

2010a). This is likely to emphasise the importance of high level customer service.

26

At the same time, not all those in this age bracket will necessarily stop working or want to

stop working. Changes to pension and equality legislation are likely to see a higher

percentage of over 50s in the labour market. This poses challenges and opportunities for

the sector, which has traditionally targeted younger workers. The sector is likely to

provide opportunities for older workers to work part-time. The workforce would then better

mirror the customer base and better understands its needs.

However, research shows that older workers are motivated by different factors, such as

flexible hours and the importance of social interaction (University of Stirling, 2010).

Employers will have to consider these factors if they are to successfully recruit and retain

them. This will mean that managers in particular have a greater understanding of the

motivations of older workers, but can also capitalise on their skills and knowledge, as

they are likely to have had varied careers in the past (People 1st, 2010a).

4.3 Changing Patterns of Skill Demand

The factors outlined in the previous section mean that tourism workforce will have to

adapt to changing demands and pressures. In some case new skills and knowledge will

have to be learnt and applied to replace existing ways of doing things, and in others

employees will have to change their traditional roles to add additional skills and

capabilities. In addition, the size and occupational profile of the workforce will shift to

meet changing demands.

Table 4.1 presents projected changes in skill demand for the tourism sector, based on

Working Futures forecasts for the period 2010 to 2020 (Wilson and Homenidou, 2011).

Total employment in the sector is projected to increase by 11 per cent, more than twice

the increase projected for the UK workforce as a whole (5 per cent). As a result by 2010,

the sector is expected to employ 289,000 more people than it did in 2010.

The shares of total employment in higher occupational groups (managers, directors and

senior officials, professional occupations and associate professional and technical

occupations) are expected to increase over the period 2010 to 2020, from 27.4 per cent

of the total workforce to 30.3 per cent. The projected increase for managers is similar to

that across all sectors, while the growth among professional and associate professional

workers in tourism is projected to be twice that across all sectors, in line with the

implications of the drivers of skills demand and the key challenges facing the sector

discussed above.

27

In addition to the growth in employment among highly skilled managerial, professional

and associate professional/technical occupations, there will also be increasing

employment opportunities among personal service and elementary occupations. Demand

for caring, leisure and other service occupations is projected to increase by 24.3 per cent

over the 10 years to 2020 (compared to 11.5 per cent across all sectors), with an

absolute change in employment of 37,000 jobs. Demand for elementary occupations is

projected to increase by 12.5 per cent (compared to 3.2 per cent across all sectors), with

112,000 additional workers. There are projected to be small increases in administrative

and secretarial occupations and in sales and customer service occupations, although

their share of total employment is expected to decrease slightly.

Table 4.1 Changing Pattern of Skill Demand

Employment Growth Numbers (000s) % shares Change (000s)

Change (%)

All sectors change

(%)

Tourism 2010 2015 2020 2010 2015 2020 2010-2020

Managers, directors and senior officials 377 401 449 14.8 14.9 15.8 71 18.9 18.0

Professional occupations 123 140 162 4.8 5.2 5.7 40 32.3 14.9

Associate professional and technical 199 223 251 7.8 8.3 8.8 52 26.2 14.0

Administrative and secretarial 218 232 237 8.5 8.6 8.4 20 9.0 -10.5

Skilled trades occupations 356 327 299 14.0 12.1 10.5 -57 -16.1 -6.5

Caring, leisure and other service 153 169 190 6.0 6.3 6.7 37 24.3 11.5

Sales and customer service 162 170 177 6.4 6.3 6.2 15 9.2 0.1

Process, plant and machine operatives 68 68 68 2.7 2.5 2.4 -1 -1.2 -10.9

Elementary occupations 895 965 1,007 35.1 35.8 35.5 112 12.5 3.2

All occupations 2,552 2,696 2,841 100.0 100.0 100.0 289 11.3 5.1


Demand for skilled trades occupations is expected to decrease between 2010 and 2020,

by 57,000 jobs, or a 16.1 per cent decrease.

28

Table 4.2 shows the projected changes in employment by qualification level. In 2020 over

a fifth (22 per cent) of the workforce is projected to be qualified to first degree level or

above, compared to 14 per cent in 2010, with the number of workers qualified at this level

increasing by 265,000 over this period. There are projected to be small increases in the

numbers of workers qualified at higher education below first degree level, and in the

number of those low-level qualifications, and decreases in the numbers with school level

qualifications (GCSEs and A-levels) and no formal qualifications.

Table 4.2 Changing Pattern of Skill Demand by qualification level

Numbers (000s) % shares Change (000s)

Change (%)

All sectors change

(%)

Tourism 2010 2015 2020 2010 2015 2020 2010-2020

QCF8 Doctorate 5 7 10 0.2 0.3 0.4 5 110.4 67.0

QCF7 Other higher degree 88 133 184 3.4 4.9 6.5 96 109.0 67.7

QCF6 First degree 263 345 427 10.3 12.8 15.0 164 62.1 25.0

QCF5 Foundation degree; 82 98 118 3.2 3.6 4.2 36 44.6 -9.9

QCF4 HE below degree level 91 103 118 3.6 3.8 4.1 27 29.7 11.5

QCF3 A level & equivalent 583 547 489 22.9 20.3 17.2 -94 -16.2 -14.4

QCF2 GCSE(A-C) & equivalent 628 628 627 24.6 23.3 22.1 -1 -0.1 -3.6

QCF1 GCSE(below grade C) & equivalent 475 534 596 18.6 19.8 21.0 120 25.3 10.1

No Qualification 337 301 272 13.2 11.2 9.6 -65 -19.3 -28.7

Total 2,552 2,696 2,841 100.0 100.0 100.0 289 11.3 5.1


4.4 Replacement Demand

In addition to new jobs, there will be a need to replace retirees and people who leave the

sector as well as backfill jobs (where an existing employee is promoted and leaves an

unfilled vacancy). Overall the tourism sector is expected to require over a million new

recruits to replace leavers over the period between 2010 and 2020; a fifth of the total

2010 sector workforce. Combined with the projected expansion demand, the sector is

expected to take on 1,350,000 new recruits over the ten year period, i.e. about 135,000 a

year.

29

Figure 4.1 shows net employment change (covering replacement demand and total

requirement) in absolute terms by occupation, for the whole economy and for the tourism

sector to 2020. Across all sectors, there is a net decrease in employment forecast

between 2010 and 2020 for administrative and secretarial occupations, skilled trades

occupations and process, plant and machine operatives. This pattern is also true for

skilled trades and operatives occupations in the tourism sector, although there is a

positive net change in employment for administrative and secretarial occupations in

tourism.

Replacement demand in the tourism sector is greatest in the elementary occupations, at

more than 300,000 jobs. The greatest replacement demand for the whole economy is

expected in professional occupations (around 2 million). The largest net change in

demand in tourism is forecast for elementary occupations, followed by managerial

occupations, whereas in the economy as a whole the largest net changes are projected

for professional, and associate professional and technical occupations.

Figure 4.1 Net Demand, 2010 to 2020

All sectors Tourism

-500 500 1,500 2,500 3,500

1. Managers, directors and seniorofficials

2. Professional occupations

3. Associate professional andtechnical

4. Administrative and secretarial

5. Skilled trades occupations

6. Caring, leisure and other service

7. Sales and customer service

8. Process, plant and machineoperatives

9. Elementary occupations

-100 0 100 200 300 400 500

1. Managers, directors and seniorofficials

2. Professional occupations

3. Associate professional andtechnical

4. Administrative and secretarial

5. Skilled trades occupations

6. Caring, leisure and other service

7. Sales and customer service

8. Process, plant and machineoperatives

9. Elementary occupations

Key: newly-arising demand replacement demand net demand


30

4.5 Conclusion

Employment in the tourism sector is projected to increase by 11 per cent by 2020, more

than twice the increase projected for the UK workforce as a whole. As a result the sector

is expected to employ 289,000 more people than it did in 2010. In addition to filling these

new jobs, tourism employers are expected to have to replace over a million employees

between 2010 and 2020. This means the sector will have to recruit around 135,000

people a year over a ten year period.

Changing consumer demand, technological innovation and global competition mean that

the sector workforce will need to change and develop, particularly at managerial level.

Generally skill levels are expected to rise, although there will still be a large number of

opportunities for people with low level (ie level 1 and 2) qualifications.

In the next section we turn to the sector’s sources of skills supply.

31

5 Skills Supply In this section we look at the supply side of the tourism labour market and examine: the

overall supply infrastructure; sources of initial supply including vocational education and

training and higher education; and the skill development and training employers provide

to their workforce.

5.1 The Supply Infrastructure

Skills supply is dependent upon the supply of labour, the skills infrastructure (including

compulsory education, further education and higher education), and employers’

investment in skills. A sufficient supply of skills is required to increase productivity and to

meet future demand for skills thus encouraging growth in the tourism sector.

There are two Sector Skills Councils covering the tourism sector:

• People 1st – covers hospitality, leisure, travel and tourism

• SkillsActive – covers sport and recreation.

These provide a number of products and services including:

• National Skills Academies for Hospitality, and for Sport and Active Leisure

• UKSP, a guidance website for careers in hospitality, leisure, travel and tourism

aimed at employers, employees and students

• Activepassport, a verified online record of an individual’s training, volunteering,

and CPD in the sport and recreation sector

• People 1st training company helping businesses become more competitive

• Employment 1st pre-employment training programme preparing people for a

career in hospitality, leisure, travel and tourism

• Women 1st dedicated training and mentoring to empower the female leaders of

tomorrow.

FE colleges and HE institutions provide relevant courses of study. A number of private

training providers also provide relevant training.

32

5.2 Trends in Skill Supply: Individuals

The tourism sector has not historically had a strong tradition of involvement with

apprenticeships, although activity has increased dramatically in recent years (Figure 5.1).

In 2010/11 there were 21,180 apprenticeship starts, more than three times the figure just

three years previously (6,270 in 2007/08). Apprenticeship achievements totalled 9,510 in

2010/11, a 160 per cent increase on the figure for 2007/08.

Figure 5.1 Apprenticeship starts and achievements (all levels), 2002/03 to 2010/11

7,170 6,750 6,750 5,860 5,590 6,270

11,330

14,690

21,180

1,740 1,950 1,9403,010 3,830 3,600

5,900

9,160 9,510

0

5,000

10,000

15,000

20,000

25,000

2002/03 2003/04 2004/05 2005/06 20006/07 2007/08 2008/09 2009/10 2010/11

Starts Achievements

Notes: 2010/11 figures are provisional

Source: Data Service (2012)

Table 5.1 shows starts in Intermediate and Advanced Apprenticeships by age between

2002/03 and 2010/11. Most of the growth in apprenticeship starts in the last two years

has been among intermediate apprenticeships, whose numbers have nearly trebled since

2007/08. There has been rapid growth in the number of older apprentices aged 25 and

over since 2007/08, with the number increasing from 530 in 2007/08 to 3,620 in 2010/11.

33

Table 5.1 Tourism apprenticeship starts by level and age, 2002/03-2010/11

Intermediate Apprenticeships 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 <19 1,430 1,730 1,980 2,150 2,120 1,810 2,620 5,450 7,070

19-24 2,240 2,670 1,960 2,010 1,570 1,710 2,900 3,730 5,720

25+ - - - - - 270 1,310 870 2,110

Total 3,670 4,400 3,940 4,160 3,690 3,790 6,830 10,050 14,900

Advanced Apprenticeships 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 <19 1,790 1,040 2,010 940 990 1,180 2,000 2,190 2,460

19-24 1,710 1,310 790 750 910 1,040 1,450 1,740 2,310

25+ - - - - - 270 1,050 710 1,510

Total 3,500 2,350 2,800 1,700 1,900 2,480 4,490 4,640 6,280

All Apprenticeships 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 <19 3,220 2,770 4,000 3,100 3,110 2,990 4,620 7,640 9,530

19-24 3,950 3,980 2,750 2,760 2,480 2,750 4,350 5,470 8,030

25+ - - - - - 530 2,360 1,580 3,620

Total 7,170 6,750 6,750 5,860 5,590 6,270 11,330 14,690 21,180

Notes: 2010/11 figures are provisional

Source :Data Service (2012)

An example of how one tourism employer has become involved with apprenticeships to

ensure there is a stream of skilled and committed workers into the sector is set out in the

box below.

Case study: Tonic

The challenge

Ensuring a supply of talented and skilled chefs is crucial for sector businesses including restaurants. Award-winning restaurant Tonic, which opened in Nottingham in 2007, wanted to ensure a good supply of skilled chefs and decided to invest in its workforce by offering apprenticeships.

The approach

Tonic has engaged with Apprenticeship provision at New College Nottingham. The Apprenticeship includes an NVQ and key skills training. It combines off-the-job training at college with on-the-job training which ensures apprentices develop the full range of skills required to become a competent chef. The apprentices work four days in the kitchen (40 hours per week) and have one day a week at college. The college works with Head Chefs in the Nottingham area to plan menus, lessons and lessons to ensure that what the apprentice learns at college is directly relevant to their business.

The Benefits

Involvement with the Apprenticeship has brought a number of benefits to the business:

• The college sources new apprentices when the restaurant needs them, and the

34

apprentices want to learn and improve their skills.

• The Apprenticeship teaches them life skills, such as communication and team-working, and business skills, including how to price menus

• Apprentices are a source of new ideas, and at the same time the business is ensuring it has skilled chefs coming up through the ranks.

• Apprentices are good value for money on the restaurants wage margin, and are very flexible in terms of working patterns and covering shifts.

’It’s what it’s about – you’re training tomorrow’s chefs. If another employer was considering taking on an Apprentice, I’d say definitely to it, you’ve got nothing to lose. Some people think it’ll be hard work in teaching them, but I think the rewards far outweigh that.’ (Leroy Allen, Head Chef)

Source: People 1st (2009)

Higher education

Another potential source of supply of young people is from higher education. In 2010/11

there was a total of 31,905 students studying for a higher education qualification (of

whom 24,045 were UK domiciled) related to hospitality, leisure, tourism and transport.

This represented an increase of 29 per cent on the 24,650 studying for similar

qualifications in 2007/08 and was almost four times as many as the 8,365 studying for

tourism, transport and travel HE qualifications in 2002/03 – a much faster rise than the

general increase in overall student numbers.

5.3 Employer Investment in Skills

Table 5.2 indicates the number of employees in receipt of work-related training over the

past 13 weeks. The proportion of the tourism workforce in receipt of such training (19.4

per cent) is lower than the proportion across the whole economy (25.5 per cent). This

training shortfall is evident among both men and women, and among young workers, with

the percentage of workers aged 25 years and under who have received such training

lower in the tourism sector (26.3 per cent) than across all sectors (29.5 per cent).

By major occupation groups, the tourism sector provides more training to workers in

elementary occupations than is the case across the whole economy, but for the higher

level occupational groups – managerial, professional and associate professional and

technical occupations – much less training is provided to workers in the tourism sector

than across all sectors.

35

Table 5.2 Number of employees in receipt of work-related training over the past 13 weeks

Occupation


Number % of

workforce Number % of

workforce

All 396,00 19.4 7,353,000 25.5

Managers, directors and senior officials 64,000 16.3 1,008,000 22.6

Professional occupations * 34.0 1,588,000 39.5

Associate professional and technical 47,000 27.8 1,505,000 35.3

Administrative and secretarial 26,000 18.6 670,000 21.1

Skilled trades occupations 34,000 14.0 477,000 15.6

Caring, leisure and other service 39,000 26.8 928,000 36.5

Sales and customer service 23,000 20.7 417,000 19.4

Process, plant and machine operatives * 17.0 289,000 15.2

Elementary occupations 148,000 19.0 470,000 14.5

Women 202,000 19.0 3,868,000 28.9

Men 194,000 19.7 3,484,000 22.6

People aged under 25 179,000 26.3 1,092,000 29.5

Note: * indicates data are not statistically reliable and have been suppressed


Not only is the incidence of work-related training lower in the tourism sector than in the

workforce as a whole, the incidence has been falling in recent years at a faster rate than

across all sectors. Figure 5.2 shows the recent trend in the proportion of employees who

had received work-related training over the past 13 weeks. The proportion of employees

in receipt of training in the tourism sector fell from 29 per cent in 2002 to 23 per cent

2009, while the proportion of employees in receipt of training across all sectors fell from

34 per cent to 30 per cent over the same period.

36

Figure 5.2 Percentage of employees in receipt of work-related training over the past 13 weeks

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007 2008 2009

% o

f tot

al e

mpl

oym

ent

TourismHospitality, leisure, travel and tourismSports and recreationAll sectors


Davies et al. (2012) report that 61 per cent of establishments in the tourism sector were

providing training to their employees, slightly above the overall figure of 59 per cent of

establishments across all sectors who provided training (see Table 5.3). The average

number of days of training per trainee was 9.9 days in the tourism sector, slightly higher

than the 8.9 days across all sectors. The average training spend per employee was also

considerably higher in the tourism sector, although much of this is a result of high levels

of induction training because of relatively high staff turnover.

Shury et al. (2011) indicate that the sector’s involvement with apprenticeships is slightly

below average, despite the sector having a high level of recruitment of young people

straight from education. According to Davies et al. (2012), eight per cent of tourism

employees had recruited someone aged 16 straight from school in the last 12 months

and 12 per cent had recruited a 17 or 18 year old from school considerably higher than

the proportion across all sectors (of four per cent and five per cent respectively). The

sector also is a big recruiter of people straight from further and higher education. One in

ten had hired college or university leavers in the past year, roughly twice the rate among

all employers.

37

Table 5.3 Employer Investments in Skills


% of employers training 60 59

% of employees receiving training 47 46

average number of training days (per trainee) 9.9 8.9

Average expenditure on training per trainee £3,635 £3,275

Average expenditure on training per employee £1,975 £1,775

% of employers who have any staff undertaking Apprenticeships at their site* 3 5

% of employers who currently offer Apprenticeships at their site* 3 4

% of employers who plan to offer Apprenticeships in the future* 6 8

% of employers who have recruited someone to their first job aged 16 from school 8 4

% of employers who have recruited someone to their first job aged 17 or18 from school 12 5

% of employers who have recruited someone to their first job aged17 or18 from FE college 11 5

% of employers who have recruited someone to their first job from university/HE 10 7

Note: training expenditure data and EPS 2010 data covers hotels and restaurants only

Source: * - Shury et al. (2011), Davies et al. (2012)

Where tourism employers do provide training, it is more likely to lead to a nationally

recognised qualification. Davies et al. (2012) found that 50 per cent of tourism

respondents who provided training said that staff had been trained towards a nationally

recognised qualification in past 12 months, compared to 43 per cent of all firms across all

sectors (Table 5.4). Where training to a qualification is provided, it is most likely to be for

a lower level (e.g. level 2) qualification. Tourism employers were less likely than average

to provide training to a higher level qualification.

38

Table 5.4 Further Indicators of Training Activity

Tourism UK % all establishments with business plan 62 61

% all establishments with training plan 42 38

% all establishments with training budget 28 29

Annual review of staff (all establishments)

All staff reviewed 47 47

No staff reviewed 40 43

Provide training (all establishments)

60 59

Train towards qualification (all employers providing training)

50 43

Training to Level 2 qualification 21 14



Assess training delivered 69 65

% of employees trained towards a qualification in last 12 months

14 12

Source: Davies et al. (2012)

These statistics give an overview of the level of training and skills development activity

undertaken by employers, but insights can also be obtained from looking at specific

examples of employers’ training activities and the value they place in what they provide

(see case studies in Chapter 7).

Employer use of external training providers

Despite an above average proportion of the sector workforce being trained towards a

qualification, evidence from the Employer Perspectives Survey suggests that tourism

employers are less likely to engage with external training providers than employers in

general: 43 per cent of tourism establishments had no contact with external providers

compared with 29 per cent of all employers. They are much less likely to engage with

universities and HE institutions than establishments in other sectors (five per cent,

compared with 13 per cent of all establishments), and are also less likely to use private

training providers (41 per cent compared with 54 per cent of all establishments) FE

colleges (17 per cent compared with 23 per cent of all establishments), and third

sector/not-for-profit providers (13 per cent compared with 19 per cent of all

establishments).

39

The reasons given by tourism employers for not training their staff were broadly in line

with those given by employers in other sectors. The most common reason was that they

thought their staff were fully proficient (62 per cent compared with 64 per cent of all

employers), followed by having no money available for training (10 per cent of both

tourism employers and all employers) (Davies et al., 2012).

Managing people

All these data suggest a relative lack of formality in the way people are managed and

developed across the sector, which may be a function of the relatively small size of many

workplaces. However, despite this a relatively large number of establishments in the

tourism sector are accredited to Investors in People compared to the UK average. Table

5.5 shows that one in five tourism establishments have met the IiP standard, compared

with 16 per cent of establishments across the economy. Furthermore, tourism

establishments are just as likely as any other to have a business plan or training budget

and to review the performance of their employees (see Table 5.4 above).

Table 5.5 Investors in People accreditation

Tourism UK

IIP accredited (%) 20 16

Not IIP accredited (%) 62 69

Don't know (%) 18 15

Weighted base 220,055 2,299,921

Unweighted base 11,318 87,572


5.4 Migration

A further source of labour supply is to recruit staff from abroad either from within or (for

designated skilled staff only) outside the EU. The Migration Advisory Committee (MAC)

shortage occupation list includes skilled chefs and cooks who meet all of the following

criteria:

• the pay is at least £28,260 per year after deductions for accommodation and

meals

• the job requires five or more years relevant experience in a role of at least

equivalent status to the one they are entering

• the job is not in either a fast food outlet, a standard fare outlet, or an

establishment which provides a take-away service

• the job is in one of the following roles:

40

o executive chef – limited to one per establishment

o head chef – limited to one per establishment

o sous chef – limited to one for every four kitchen staff per establishment

o specialist chef – limited to one per speciality per establishment

5.5 Conclusion

The number of apprentices in the sector has been rising rapidly in recent years as have

the number of students studying for tourism-related degrees. However the numbers are

still small relative to potential demand. In 2010/2011 9,500 people completed their

apprenticeship and about the same number graduated with a tourism-related degree;

only a fraction of the 135,000 people that the industry is likely to need to recruit each

year. The volume of initial supply will need to increase to meet this level of demand

unless employer-provided training can take up the slack. Here the picture. Most

employers provide training to their staff they tend to spend more than average and are

more likely to provide training towards a qualification. However the qualifications are

generally low level and a lot of training is likely to be induction-type , to cope with the high

levels of labour turnover, than skill-related

In the next section we look at the evidence on skills mismatch to see whether the supply

side is coping with current levels of demand.

41

6 Skill Mismatches

6.1 Defining Skill Mismatches

Previous evidence has demonstrated that mismatches between the demand for, and

supply of skills, can be damaging for organisational performance (Wilson and Hogarth,

2002). To some extent, skill mismatches will result from ongoing processes of technical

and organisational changes within firms, and shifts in the pattern of demand in external

markets. These may be transitional mismatches as the demand side begins to fully

articulate its skill requirements and the supply side responds accordingly. But there are

also likely to be structural mismatches where the demand for, and supply of, skills remain

out of kilter despite the market signalling what skills are required.

As there is no direct measure of mismatches between the demand for, and supply of,

skills, at the sectoral level, inferences about the balance between the two are typically

made through various means given that each measure provides only partial information.

A common method is employer reports of skill mismatches in the form of hard-to-fill

vacancies (HtFVs) and skill-shortage vacancies (SSVs) which provide an indication of the

difficulties employers have in recruiting people from the external labour market with the

skills and attributes they require. Surveys also capture information about problems

employers experience with the skills of existing staff with respect to the extent they lack

full proficiency in their jobs (i.e. skill gaps). Skill deficiencies can also be inferred from

other data, such as earnings, as employers may respond to a skill shortage by offering

higher wages. Conversely, survey evidence on underemployment can indicate where

available skills are not being fully utilised.

6.2 Evidence of employer reported skill deficiencies

Davies et al. (2012) shows that labour demand is higher in the tourism sector than across

the economy as a whole, with 32 vacancies per 1,000 employees, compared to the

average across all sectors of 23 vacancies per 1,000 workers (Table 6.1). Furthermore,

not only are tourism employers more likely to report vacancies compared with all

employers, they are also more likely to report hard-to-fill vacancies, and more likely to

report that vacancies are hard-to-fill due to a shortage of applicants with the required

experience, skills or qualifications. This suggests that skill shortages adversely affect the

sector.

42

Table 6.1 Skill Deficiencies

UK Tourism sector

Vacancies per 1,000 employees 23.1 31.9

as a % of employees 2% 3%

% of establishments with at least one vacancy 12% 15%

Total 635,900 73,900

Hard to fill vacancies (HtFVs)

per 1,000 employees 5.2 7.9

as a % of vacancies 23% 25%

% of establishments with at least one HTFV 4% 5%

Total 143,550 18,250

Skill Shortage Vacancies


as % of all vacancies 16% 15%

% of establishment with at least one SSV 3% 3%

Total 103,450 11,150

Skill Gaps


as % of employees 5% 8%

% of establishments reporting a skill gap 13% 20%

Total 1,489,500 193,550

Various bases: All establishments; Vacancies as a % of employees based on all employment; Hard-to-fill vacancies as a % of vacancies based on all vacancies; SSVs as a % of vacancies based on all vacancies; Skills gaps as a % of employees based on all employment. Notes: Numbers rounded to nearest 50


Skill gaps (the extent to which employers regard their workforce as not being fully

proficient at their existing job) are significantly higher in the sector than average.

Employers in the sector report that 84 staff in every 1,000 are less than fully proficient in

their job, compared with 54 per 1,000 employees across the economy as a whole.

Overall, where tourism employers report skill shortages they are much more likely to be in

elementary occupations, and skilled trade occupations, compared with the economy as a

whole (see Figure 6.1). Elementary occupations account for over one third of all skill

shortages in the sector, and skilled trade occupations account for over a quarter, whereas

across all sectors these occupations account for seven per cent and 17 per cent of skill

shortages respectively. These are critically important occupations for the tourism sector,

comprising the largest occupational shares of employment.

43

Reported skill shortages among the higher occupational groups in the sector are similar

to the overall averages for managerial and associate professional and technical

occupations. There are virtually no skill shortages reported among professional

occupations in tourism, but the numbers of people in these occupations are low so this

should be interpreted with caution.

Figure 6.1 Occupational Distribution of Skill Shortages in Tourism

5

0

20

3

27

6

3

1

36

1

5

20

22

7

9

7

5

2

7

17

0% 5% 10% 15% 20% 25% 30% 35% 40%

Managers

Professionals

Associate professionals

Administrative/clerical staff

Skilled trades occupations

Caring, leisure & other services staff

Sales and customer services staff

Machine operatives

Elementary staff

Unclassified staff

TourismAll sectors

Base: All skill shortage vacancies


Skill gaps

More than half of all skills gaps in the sector are in elementary occupations and 16 per

cent are in sales and service occupations, while across all sectors one fifth of skill gaps

are in each of these occupational groups. As with skill shortages, skill gaps for higher

level occupations are similar to the average for the economy as a whole.

44

Figure 6.2 Occupational Distribution of Skill Gaps in Tourism

10

1

1

4

4

5

16

3

56

11

9

6

11

8

19

8

20

7

0% 10% 20% 30% 40% 50% 60%

Managers

Professionals

Associate professionals

Administrative/clericalstaff

Skilled tradesoccupations

Caring, leisure & otherservices staff

Sales and customerservices staff

Machine operatives

Elementary staff

Tourism

All sectors

Base: All skills gaps


Causes, Impacts and Remedies

Davies et al. (2012) provide a wealth of information about the causes and implications of

skill shortages and skill gaps, based on findings from the UK Commission’s Employer

Skills Survey 2011.

In general, the most common cause of skill shortages was a low number of applicants

with the required skills, reported by 30 per cent of tourism establishments, compared to

40 per cent of establishments across all sectors. Particular issues for the tourism sector,

compared to other sectors, were:

• Low number of applicants with the required attitude, motivation or personality (21

per cent, compared to 18 per cent across all sectors)

• Job entails shift work/unsociable hours (20 per cent, compared to nine per cent

across all sectors)

• Not enough people interested in doing this type of job (20 per cent, compared to

18 per cent across all sectors)

45

• Poor terms and conditions (e.g. pay) offered for post (18 per cent, compared to 13

per cent across all sectors)

• Remote location/poor public transport (12 per cent, compared to six per cent

across all sectors).

There were a range of skills that tourism establishments found difficult were lacking in

applicants. Job-specific skills were the most common skill in short supply, but less

commonly mentioned than in other sectors (63 per cent of tourism employers, compared

to 67 per cent of all employers). Planning and organisation skills, customer handling

skills, oral communication skills, and team working skills were each mentioned by half of

tourism establishments, and were more commonly mentioned by tourism establishments

than establishments overall. Other skills that were particular issues for tourism

establishments were literacy skills, numeracy skills and foreign language skills.

The main implications of skill shortages for the operation of the organisation was to

increase the workload of others, mentioned by 82 per cent of tourism establishments

compared to 83 per cent of all establishments, and difficulties meeting customer services

objectives, mentioned by 45 per cent of tourism establishments, the same proportion as

across all sectors. Skills shortages also caused significant numbers of tourism

establishments to have difficulties meeting quality standards, mentioned by 41 per cent of

tourism establishments compared to 34 per cent of all establishments.

The main responses to experiencing skill shortages were to increase advertising or

recruitment spend, mentioned by 40 per cent of tourism establishments with skills

shortages, and to use new recruitment methods or channels, mentioned by 27 per cent.

These proportions are close to those found across all establishments. Six per cent of

tourism establishments with skill shortages said they would increase salaries to attract

more suitably skilled employees, above the overall proportion of four per cent.

Skill gaps were seen to result from staff being only partially trained or being new to their

role. Tourism establishments also reported that skills gaps resulted from staff lacking

motivation (39 per cent, compared to 32 per cent of all establishments), staff having been

on training but their performance not improving sufficiently (35 per cent, compared to 29

per cent), being unable to recruit staff with the required skills (23 per cent, compared to

18 per cent), and problems retaining staff (15 per cent, compared to eight per cent).

46

The skills that most commonly needed improving were customer handling skills (reported

by 59 per cent of tourism establishments compared to 45 per cent of all establishments).

Tourism establishments were more likely than other establishments to report that

planning and organisation skills, team working skills, oral communication skills and

problem solving skills needed improvement.

Skill gaps were having a major impact on how the establishment performed in 16 per cent

of tourism establishments, close to the figure of 15 per cent across all sectors. The main

implication of skill gaps was increased workload for other staff, as was the case across all

firms. However a particular issue for tourism establishments is difficulties meeting quality

standards, mentioned by 51 per cent of tourism establishments compared to 40 per cent

of all establishments. Increased operating costs, and losing business or orders to

competitors, were also commonly mentioned by tourism establishments.

Tourism establishments were just as likely as those in other sectors to have taken steps

to improve the proficiency or skills of staff with skill gaps – 76 per cent of tourism

establishments had taken steps to improve staff proficiency, compared to 75 per cent of

all establishments. The actions that were taken were broadly in line with those across all

sectors: increasing training activity/spend or increasing or expanding trainee

programmes, followed by more supervision of staff, more staff appraisals/performance

reviews, implementation of mentoring/buddying scheme, and re-allocating work. Tourism

establishments were more likely than those in other sectors to recruit workers who are

non-UK nationals (17 per cent compared to 10 per cent overall).

6.3 Under-employment

Under-employment refers to workers who are over-qualified or over-skilled (they do not

require their qualifications or experience to do their job). The picture regarding workforce

under-employment is a slightly mixed in the tourism sector. On the one hand, the sector

is more likely than the economy as a whole to have under-employed staff: 60 per cent of

tourism establishments said they had some under-employed, compared to 49 per cent of

establishments across all sectors. In addition, 24 per cent of employees in the sector are

over-qualified, compared to 16 per cent across the whole economy. However, a slightly

lower than average proportion of tourism establishments reported that all staff were

under-employed (17 per cent, compared to 19 per cent across all sectors) (Davies et al.,

2012).

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One way of reducing under-employment is to adopt High Performance Working (HPW).

HPW is ‘a general approach to managing organisations that aims to stimulate more

effective employee involvement and commitment in order to achieve high levels of

performance’ (Belt and Giles, 2009), and provides opportunities for employees to use

their skills more effectively at work. In the sector, 39 per cent of employers say their

employees have variety in their work ’to a large extent’ compared to 55 per cent across

the economy as a whole, and 40 per cents said employees have discretion over how they

do their work ‘to a large extent’ compared to 52 per cent across the economy as a whole.

(Davies et al., 2012). Adopting HPW could increase opportunities for task discretion as

well as the variety of tasks undertaken by employees, allowing them to use their skills

more fully as so reducing under-employment.

6.4 Wages

Another potential indicator of mismatch between demand and supply for skills is earnings,

as where skills are scarce wages tend to rise. Table 6.3 sets out the latest data from the

Annual Survey of Hours and Earnings (ASHE, 2011) on a number of industries in the

tourism sector. Data for the sector as a whole are not available.

Generally wages in the sector are relatively low, reflecting the occupational and

qualification profiles of the workforce. There is a mixed picture in terms of earnings

growth over the last year, with earnings growing in the accommodation and gambling

sectors, falling in the travel agency and tour operator sector, and in sports activities and

amusement and recreation activities, and being broadly stable in the food and beverage

service activities sector.

Table 6.3 Earnings growth in the tourism sectors

Sector SIC

Code Median

(£) Annual % change

Mean (£)

Annual % change

All Employees - 403.9 0.0 491.4 0.8

All Service Industries - 384.4 0.1 478.0 0.7

Accommodation 55 250.6 0.9 294.6 2.2

Food and beverage service activities

56 186.8 0.6 226.3 -0.2

Travel agencies, tour operators etc.

79 358.8 -2.7 457.0 -1.5

Gambling and betting 92 282.8 1.6 337.9 0.1

Sports activities and amusement and recreation activities

93 244.9 0.0 329.3 -10.2

Source: ASHE 2011, provisional data

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6.5 Conclusion

The most recent evidence relating to skills mismatches and skills deficiencies indicates

relatively strong labour demand in the tourism sector that is outstripping supply even in

the current slack labour market. Although wages are generally rising no faster in the

tourism sector than in the economy as a whole, tourism establishments were more likely

to experience difficulties filling vacancies with the right skills than establishments in

general. Skill shortages were most commonly encountered for elementary staff, and

skilled trades occupations. The existence of experienced chefs on the MAC skill shortage

occupation list is further evidence of the difficulties some employers are facing in finding

the right people for some roles. In addition to job-specific skills, employers found it difficult

to obtain organisation skills, customer handling skills, oral communication skills, and team

working skills from the external labour market.

Tourism employers are also concerned about the proficiency of existing staff, with skill

gaps more common in the tourism sector than in the whole UK workforce, mainly due to a

lack of motivation among employees, poor levels of performance and retention difficulties.

However skill gaps were no more likely to have a major impact in the tourism sector as

elsewhere, and establishments in the sector were just as likely as those elsewhere to

have taken steps to remedy them. As was the case with skills shortages, gaps were most

likely among elementary staff, with customer handling skills, organisation skills, team

working skills and oral communication skills most commonly needing improving.

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7 Conclusion

7.1 The Sector Today and Tomorrow

The tourism sector is important to the UK economy in terms of the employment and gross

value added it contributes. The sector accounts for five per cent of total GDP and eight

per cent of total employment. In addition, businesses in other sectors sell to and

purchase from the visitor economy, contributing as much again to GDP. Output has

increased rapidly over the last decade, by over five per cent per year, and is projected to

increase at a similar rate over the coming decade, but productivity in the sector as a

whole is relatively low.

The government has announced ambitious plans for the sector, with two key goals:

• to become one of the Top 5 destinations in the world in terms of revenue from in-

bound tourists

• for half of the tourism expenditure of UK residents to be spent in the UK rather

than overseas.

The ‘Golden Decade of Sport’ (major sporting events across UK from the Olympics to the

Cricket World Cup) and other events such as the Queen’s Diamond Jubilee and the 2013

City of Culture in Derry/Londonderry provide incredible opportunities to promote the UK

visitor economy, at a time when international tourism is set to grow rapidly.

To realise these ambitions the sector as a whole will need recognise talent as a source of

competitive advantage. Employers will need to collaborate on, lead and own solutions to

the sector’s skills issues. In partnership with government, and education and training

providers, tourism employers can ensure the UK has the capability to attract a growing

share of the international tourism market, and bring knock-on benefits to other sectors.

This vision is dependent upon the sector being able to drive up skill levels across the

workforce and introducing the types of working practices and progression opportunities

which will make it an exciting sector in which to work and attract talented individuals.

7.2 The Performance Challenge

The sector faces a number of challenges in its drive to improve performance, particularly

at a time when many employers are clearly faced with substantial risks to their survival as

a consequence of the low levels of demand in the economy.

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Productivity is lower in the tourism sector than in most other sectors and there is also a

greater dispersion in productivity between the top performers and the bottom performers.

One driver in improving productivity is a better matching of staff to workload, as

accurately predicting demand and improved staff scheduling reduces staff downtime and

increases productivity. Managerial capability is a key factor affecting staff planning and

scheduling and thus sector productivity.

The tourism industry has one of the highest levels of staff turnover of all UK sectors,

which results in large costs to the sector in terms of recruitment costs and initial

investment in training for new recruits. A key reason for high levels of labour turnover is

the historic recruitment of transient labour, such as students and international workers,

who are seeking short-term job opportunities rather than long-term careers in the sector.

Reliance on transient workers can reduce the effectiveness of employer engagement

activities, which in turn reduces the potential for greater productivity gains. Alternatives to

transient workers could include female returners and older workers, who may prefer

permanently flexible roles, and could provide businesses with flexibility whilst reducing

staff turnover costs and the loss of skills and knowledge.

The interaction between employee engagement and labour turnover may result in a

vicious circle, whereby high levels of labour turnover undermine employee engagement

activities, which leads to a demotivated workforce and contributes to high labour turnover.

This can be exacerbated if staff don’t receive appropriate training and don’t perceive

there to be career pathways within the sector. However, employers who invest in staff

can turn this around, and create a virtuous circle where workforce upskilling and

engagement results in greater levels of motivation and satisfaction, a more stable

workforce, and improved business performance.

Nestled within the wider set of performance challenges is a specific set of skill challenges

which the sector will need to increasingly address, including:

• Secure sufficient supply of skill to the sector to meet expected high levels of

expansion and replacement demand

• Improve employee engagement and motivation and minimise labour turnover, so

that employers and employees can reap the benefits of training and improved

customer service

• Continually improve the skill base of existing staff to minimise skill gaps and make

up for skill shortages. This will include investing in management skills and

customer service skills.

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7.3 Growth through Skills

Substantial training and skills development infrastructure provided through the sector

bodies, the education sector and private training providers. This provides structured,

externally accredited training at both initial and continuing levels, and much training

arranged by employers leads to nationally recognised qualifications.

There are a number of activities employers from across the sector should be engaging in

to ensure their future growth:

Improving information, advice and guidance – employers offering people a ‘taster’ of

the sector is a good way of changing perceptions, and offering a work experience

placement can help people decide whether the sector is for them. For example, UKSP is

a guidance website for careers in hospitality, leisure, travel and tourism. It provides

individuals with information on sector roles and career paths. Employers can post

vacancies, search the ‘talent directory’ of individuals looking for a career in the sector,

and get access to information on qualifications and training courses.

There are also initiatives introduced by the national skills academies such as the

Recruitment Academy, which matches early-career young chefs and front of house staff

graduating from accredited colleges to employers, and pre-employment training

opportunities that employers can get involved in and benefit from.

Use of apprenticeships – the sector recruits a lot of young people straight from school

or college, and formal apprenticeships could help to deal with the skills shortages and

skills gaps in elementary occupations, which in turn could help turnover and retention

issues in the sector. Apprenticeships can also help to develop clear pathways to

management roles for young people in the sector, as in the example of TUI Travel (see

panel).

Case study: TUI Travel

The challenge

TUI Travel PLC is a large travel group which employs 19,000 people in the UK. The company needed to ensure a sufficient supply of future workers for its posts in the UK and overseas.

The approach TUI Travel PLC established an extensive apprenticeship programme. They receive 15,000 applications per year and have a rigorous selection process which includes a “taster day” in a branch. They provide a range of support to apprentices, including a two-day “Welcome Event”, five hours of study time a week, six formal off-the-job training days a year, and e-learning support. There are now 450 apprentices working towards the Level 2 Apprenticeship in Travel and Tourism Services and 350 on Level 3

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Advanced Apprenticeship (2008).

Additional support includes an Apprenticeship Expert in each region, Shop Managers with specific responsibility for the delivery of training to apprentices, and an individual workplace mentor (usually an ex-apprentice).

The benefits

The benefits of investing in workforce skills include:

• Improved sales performance – ex-apprentice Travel Advisors achieve 16 per cent more sales than non-apprentices, ex-apprentice Retail Managers 13 per cent more.

• Improved retention – apprentices stay with the company on average two years longer than non-apprentices.

• Improved progression – 44 per cent of Assistant Retail Managers are ex-apprentices, compared to 13 per cent of Travel Advisors, and all apprentices are provided with a ‘career map’ which sets out the range of progression opportunities.


Untapped labour pools – in addition to recruiting young people straight from education,

whose numbers will be falling over the coming decade, the sector also relies heavily on

transient labour. Employers will need to look to alternative labour pools to meet their

recruitment needs, such as women returners and early retirees, who may desire flexible

working options and can substitute for transient workers. This can help to give the sector

a workforce that better mirrors its customer base and better understands its needs.

Improve management training – management skills are crucial for the sector to make

the most of the market opportunities available and in particular to engage and motivate

staff to ensure high levels of performance and minimise labour turnover. The value of

management training in reducing labour turnover and improving employee satisfaction

can be seen in the example of Red Carnation Hotels (see panel)

Case study: Red Carnation Hotels

Red Carnation Hotels, a collection of 13 international boutique hotels with 900 staff in the UK and 2,000 staff worldwide, was experiencing retention problems, with high labour turnover of 80 per cent, potentially damaging the quality and consistency of service and the reputation of the company.

The Approach

Red Carnation Hotels developed a management and leadership training programme (Ambassadors in Management) to improve people management skills. The AIM programme, linked to nationally recognised qualifications, was designed to equip managers with the skills to become excellent people managers. The Managing Director took a close interest in the programme.

53

‘That’s a key message for any CEO, MD or GM – you need to take an interest, it’s amazing the impact that has on the staff. If we want to keep and grow them, we’ve all got to take an interest and give our time.’ (Liz McGivern, HR and Training Director)

The Benefits

AIM has resulted in significant business benefits:

• Labour turnover reduced from 80 per cent in 2001 to 24 per cent in 2009, with improvements at all levels

• The business saved £500,000 in recruitment costs over the past eight years

• Improved succession planning, and increased internal promotion of managers

• Improved employee satisfaction, resulting in the company being awarded First Class status in Best Companies to Work for 2009.


Raise levels of employee engagement and customer service – management training

is not the only way to improve employee motivation and performance. Employers can

develop their own approaches to employee engagement and/or use support programmes

such as Smiles of Britain, offered by National Skills Academy for Hospitality/

A comprehensive strategy to improve levels of customer service through improved

employee engagement can generate significant benefits for the tourism sector as the

example of Malmaison demonstrates (see panel)

Case study: Malmaison and Hotel du Vin

The challenge

Sister hotel groups Malmaison and Hotel du Vin were, like many others in the tourism sector, affected by the economic downturn. They decided to “put customer service back on the agenda”, to differentiate themselves from competitors who prioritise cost cutting and revenue generation over the customer experience during an economic downturn.

The Approach

The approach was to develop an employee engagement strategy, with the aim of having happy staff at all levels, engaged in their jobs and caring for guests.

At the heart of the engagement strategy is a focus on customer service and a philosophy of ‘win-win’ – employees are offered training to support career progression, and the business expects excellent performance – and ‘keep it simple’ – staff are given the freedom to be themselves and make their own decisions of in providing high quality customer service.

Focus groups with staff identified the behaviours of actively engaged employees:

54

• strong relationship building with customers, managers & peers

• attention to detail, and giving the extra ten per cent

• energy and drive

• resilience and passion in one’s work

• shaping each working day into one’s own, and being achievement-focused

A number of practices were introduced to encourage and develop these qualities in employees, including a development day for managers, an appraisal system based on the five behaviours, training opportunities, and improved communication between management and staff.

The Benefits

A number of benefits have been measured:

• customer service complaints have decreased by 15 per cent following staff training, and repeat business is thought to have increased although it has been too early to measure;

• staff turnover has declined by 17 per cent year on year since the initiatives were introduced; and

• average customer spend increased in hotel brasseries by 11 per cent.


7.4 Business benefits

As outlined throughout this paper, investing in skill development can bring a range of

benefits individual, employers and wider economic and societal perspective as

demonstrated in the comprehensive review of the value of skills undertaken by UKCES

(Garrett et al., 2010).

Generally the possession and acquisition of skills and qualifications is directly associated

with an individual’s employment and earnings prospects. Garrett et al. (2010) outlined the

economic return to higher level academic qualifications (ie Bachelor degrees and above)

and also apprenticeships. There are significant wage premium attached to gaining an

apprenticeship, from an individual’s point of view and employers recoup any costs they

incur in providing apprenticeships in a short space of time.

There are a range of business benefits that investment in training can bring employers.

Evidence across a number of sectors suggests that employers who invest in training are

more likely to survive than those who don’t (Collier, et al., 2007). Just one per cent of

sector employers (and all employers) that do not train say it is because trained staff may

be poached by another employer (Wilson and Homenidou, 2011). Employees who

receive training are in fact more likely to stay with their employer than those who do not

(Garrett et al, 2010).

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Another way of looking at the benefits of training is to consider the costs associated with

not developing the skills of the workforce. As pace of technological change intensifies the

need to update and refresh the skill base of the workforce can only increase. Hotels and

restaurants that do not train are nine times more likely to close than those who do train

their staff. The business benefits of training in the sector go beyond company survival.

Businesses that are willing and able to innovate, and that do not see any inherent conflict

between technological or creative excellence, and commercial excellence, will reap

rewards through increased sales and turnover, and staff satisfaction and retention.

Garrett et al. (2010) conclude that ‘the investments employers make in workforce training

raises productivity and firm performance across a range of measures’, and that the

‘productivity effect of training available to employers is up to 5 times that captured by

employees in wages’.

There is evidence that the demand for labour across the tourism sector is outstripping

supply. Currently skill shortages and gaps are predominantly concentrated among

elementary occupations, and mainly around customer service skills. While addressing

these shortages and gaps directly will improve the situation for the sector, sustainable

improvements will come from developing management skills, particularly the people

management skills of first line managers and supervisors. As the labour market recovers

the ability to improve skills through recruitment will only become more difficult. Greater

levels of employer investment in the existing workforce provide a cost effective alternative

for the sector to develop and grow,

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List of previous publications Executive summaries and full versions of all these reports are available from www.ukces.org.uk Evidence Report 1 Skills for the Workplace: Employer Perspectives Evidence Report 2 Working Futures 2007-2017 Evidence Report 3 Employee Demand for Skills: A Review of Evidence & Policy Evidence Report 4 High Performance Working: A Synthesis of Key Literature Evidence Report 5 High Performance Working: Developing a Survey Tool Evidence Report 6 Review of Employer Collective Measures: A Conceptual Review from a Public Policy Perspective Evidence Report 7 Review of Employer Collective Measures: Empirical Review Evidence Report 8 Review of Employer Collective Measures: Policy Review Evidence Report 9 Review of Employer Collective Measures: Policy Prioritisation Evidence Report 10 Review of Employer Collective Measures: Final Report Evidence Report 11 The Economic Value of Intermediate Vocational Education and Qualifications Evidence Report 12 UK Employment and Skills Almanac 2009 Evidence Report 13 National Employer Skills Survey 2009: Key Findings Evidence Report 14 Strategic Skills Needs in the Biomedical Sector: A Report for the National Strategic Skills Audit for England, 2010 Evidence Report 15 Strategic Skills Needs in the Financial Services Sector: A Report for the National Strategic Skills Audit for England, 2010

http://www.ukces.org.uk/

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Evidence Report 16 Strategic Skills Needs in the Low carbon Energy generation Sector: A Report for the National Strategic Skills Audit for England, 2010 Evidence Report 17 Horizon Scanning and Scenario Building: Scenarios for Skills 2020 Evidence Report 18 High Performance Working: A Policy Review Evidence Report 19 High Performance Working: Employer Case Studies Evidence Report 20 A Theoretical Review of Skill Shortages and Skill Needs Evidence Report 21 High Performance Working: Case Studies Analytical Report Evidence Report 22 The Value of Skills: An Evidence Review Evidence Report 23 National Employer Skills Survey for England 2009: Main Report Evidence Report 24 Perspectives and Performance of Investors in People: A Literature Review Evidence Report 25 UK Employer Perspectives Survey 2010 Evidence Report 26 UK Employment and Skills Almanac 2010 Evidence Report 27 Exploring Employer Behaviour in relation to Investors in People Evidence Report 28 Investors in People - Research on the New Choices Approach Evidence Report 29 Defining and Measuring Training Activity Evidence Report 30 Product strategies, skills shortages and skill updating needs in England: New evidence from the National Employer Skills Survey, 2009 Evidence Report 31 Skills for Self-employment

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Evidence Report 32 The impact of student and migrant employment on opportunities for low skilled people Evidence Report 33 Rebalancing the Economy Sectorally and Spatially: An Evidence Review Evidence Report 34 Maximising Employment and Skills in the Offshore Wind Supply Chain Evidence Report 35 The Role of Career Adaptability in Skills Supply Evidence Report 36 The Impact of Higher Education for Part-Time Students Evidence Report 37 International approaches to high performance working Evidence Report 38 The Role of Skills from Worklessness to Sustainable Employment with Progression Evidence Report 39 Skills and Economic Performance: The Impact of Intangible Assets on UK Productivity Growth Evidence Report 40 A Review of Occupational Regulation and its Impact Evidence Report 41 Working Futures 2010-2020 Evidence Report 42 International Approaches to the Development of Intermediate Level Skills and Apprenticeships Evidence Report 43 Engaging low skilled employees in workplace learning Evidence Report 44 Developing Occupational Skills Profiles for the UK Evidence Report 45 UK Commission’s Employer Skills Survey 2011: UK Results Evidence Report 46 UK Commission’s Employer Skills Survey 2011: England Results Evidence Report 47 Understanding Training Levies Evidence Report 48

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Sector Skills Insights: Advanced Manufacturing Evidence Report 49 Sector Skills Insights: Digital and Creative Evidence Report 50 Sector Skills Insights: Construction Evidence Report 51 Sector Skills Insights: Energy Evidence Report 52 Sector Skills Insights: Health and Social Evidence Report 53 Sector Skills Insights: Retail Evidence Report 54 Research to support the evaluation of Investors in People: Employer Survey

Evidence Reports present detailed findings of the research produced by the UK Commission for

Employment and Skills. The reports contribute to the accumulation of knowledge and intelligence on skills and employment issues through the review of

existing evidence or through primary research. All of the outputs of the UK Commission can be accessed

on our website at www.ukces.org.uk

Produced by the Institute for Employment Studies for the UK Commission for Employment and Skills.

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